Economics
Slowing U.S. Consumer Inflation May Sow Fed Doubt on Prices
The reflection of a shopper is seen on a window as shoes are displayed for sale on Steinway Street in the Queens borough of New York.
Photographer: Mark Kauzlarich/BloombergThis article is for subscribers only.
A greater-than-expected deceleration in U.S. consumer-price inflation in May could give some pause to Federal Reserve officials as they consider further interest-rate increases, Labor Department figures showed Wednesday.
While the data can be volatile month to month, often depending on energy and food prices, the underlying measure of inflation has slowed to 1.7 percent from 2.3 percent in January, raising the risk that price gains will drift further from the Federal Reserve’s target.