Inflation & Prices
US Inflation Broadly Cools in Encouraging Sign for Fed Officials
- CPI came in below forecasts in May, stoking market rally
- Traders priced in two Fed cuts in 2024, first in November
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A key measure of underlying US inflation stepped down for a second month in May, a pleasant surprise for Federal Reserve officials looking for signs that they can start to lower interest rates.
The so-called core consumer price index — which excludes food and energy costs — climbed 0.2% from April, Bureau of Labor Statistics figures showed. The year-over-year measure rose 3.4%, cooling to the slowest pace in more than three years, according to data out Wednesday.