US Inflation Report Suggests Fed Rate Pause Will Become a Full Stop
- Annual CPI decelerated to 4% in May, slowest since March 2021
- Fed likely done hiking, but ‘it will be close,’ economist says
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US inflation continues to cool, giving the Federal Reserve room to take a breather from interest-rate hikes this week. The details offer signs it might become a full stop.
The consumer price index rose 4% in May from a year earlier, marking the smallest advance since March 2021. Core services inflation excluding housing, a category many forecasters see as key to the outlook, receded to the slowest pace in 15 months.