Consumer prices in the United States experienced a modest increase in May, leading to the lowest annual inflation rate in over two years. However, underlying inflation pressures remained strong, reinforcing expectations that the Federal Reserve will keep interest rates unchanged tomorrow, Wednesday.
The Department of Labor reported today, Tuesday, that the Consumer Price Index (CPI) rose by 0.1 percent last month, with a decline in gasoline prices. The index had increased by 0.4 percent in April.
Over the twelve months leading up to May, the index increased by four percent, marking the lowest annual increase since March of 2021 and following a 4.9 percent increase in April.
Economists surveyed by Reuters had expected the CPI to rise by 0.2 percent on a monthly basis and 4.1 percent on an annual basis last month.
The core Consumer Price Index, which excludes food and energy prices, rose by 0.4 percent in May, maintaining the same rate of increase for the third consecutive month.
Over the twelve months ending in May, the core Consumer Price Index increased by 5.3 percent, following a 5.5 percent increase in April
