Inflation & Prices
US Inflation Cools, Spending Stagnates as Economy Loses Steam
- Price-adjusted spending was flat in May, below forecasts
- Fed’s preferred inflation measures eased, but still elevated
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The Federal Reserve’s preferred measures of US inflation cooled in May and consumer spending stagnated, suggesting the economy’s main engine is starting to lose some momentum.
The personal consumption expenditures price index rose 0.1% in May, Commerce Department figures showed Friday. From a year ago, the measure eased to the slowest pace in more than two years.