Inflation cooled in May, new data showed Wednesday, which is good news just hours before the Federal Reserve makes its latest interest rate announcement.
Consumer prices rose 3.3% from a year ago, slowing from April's 3.4% rate, according to the Bureau of Labor Statistics' latest Consumer Price Index report released Wednesday.
On a monthly basis, prices remained stable, a slower pace than the 0.3% increase in April.
It is the first time since July 2022 that the CPI does not increase monthly.
Economists were expecting a 0.1% monthly rise and a 3.4% annual gain, according to FactSet consensus estimates.
Falling gas prices, which fell 3.6% since April, helped curb inflation in May. They are still up 2.2% on the year. Grocery prices were stable and overall food prices rose 0.1%, driven by a slight acceleration in inflation at the restaurant level.
However, housing inflation more than offset the decline in gasoline, rising 0.4% for the fourth consecutive month, underscoring the pressure Americans feel over housing-related expenses.
Excluding gas and food, categories that tend to be volatile, the closely watched “core” measure rose just 0.2% for the month (its slowest pace since October last year), and its annual rate fell to 3.4%, setting a new third record. -minimum year.
