Consumer prices cool in May

WASHINGTON -U.S. consumer prices cooled in May, up only 0.1% from April and extending the past year’s easing of inflation. However, some measures of price pressures remained high. Measured year-over-year, inflation slowed to 4% in May - the lowest 12-month figure in two-plus years and well below April’s 4.9% annual rise. The reversal was driven by falling gas prices, a smaller rise in grocery prices than in previous months and less expensive furniture, air fares and appliances. The inflation figures arrive just as Federal Reserve officials begin a pivotal two-day meeting June 14, after which they’re expected to leave interest rates alone after 10 straight rate hikes dating to March 2022. Top Fed officials have said they’re leaning toward a “skip” of rate increase to allow time to assess how their hikes have affected inflation and the overall economy. May's drop-off in overall inflation isn’t likely to convince the Fed’s policymakers that they’re close to curbing high inflation. The Fed tends to focus more on “core” prices, excluding volatile food and energy costs. Core prices remained high in May, 0.4%, the sixth straight month of increases at least at that level. Compared with a year ago, core inflation slipped to 5.3%. That is still far above the Fed’s target of 2%. (The AP 06/`13/23) US consumer price growth slowed last month as inflation shows signs of steady decline | AP News