Economics
U.S. Core Inflation Cools, Bolstering Case for Fed Rate Cut
- Stocks decline and bets on Fed easing rise on inflation data
- Monthly core prices and wider annual gauge also below forecast
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A closely watched measure of U.S. inflation trailed forecasts in May, reinforcing the case among investors for the Federal Reserve to cut interest rates.
The core consumer price index, which removes energy and food costs, rose 2% from a year earlier, according to a Labor Department report Wednesday. Economists surveyed by Bloomberg had predicted a 2.1% increase. Monthly core price-rises, as well as a wider measure of annual inflation, also came in below estimates.