Inflation & Prices
US Inflation Slows, Giving Room for Fed to Pause Rate Hikes
- Annual CPI decelerated to 4% in May, slowest since March 2021
- Core inflation is still hot, highlighting lingering pressures
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US inflation slowed in May, supporting the case for Federal Reserve officials to pause their run of interest-rate hikes this week.
Both the consumer price index and the core CPI — which excludes food and energy — decelerated on an annual basis, highlighting inflation’s descent since peaking last year. At 4%, year-over-year inflation is now at its lowest level since March 2021, according to data out Tuesday from the Bureau of Labor Statistics.