Official data indicates that US consumer price increases tapered off significantly last month, ahead of a crucial meeting where policymakers will announce their most recent interest rate decision.
The US Labor Department reports that prices increased 3.3% year over year through the end of May, while they decreased 0.1 percentage points from the previous month.
Even if rent continues to be a burden on household budgets, core inflation—which takes out more volatile items like food and energy prices—also dropped.
The Federal Reserve is not expected to lower interest rates this month, despite the fact that borrowing costs are at their highest point in years.
Although the inflation rate is still higher than the US central bank’s 2% target, it was lower than some economists had predicted, which indicates that they now think a rate drop this year is more likely.
While food inflation stayed at roughly 2%, Americans are nonetheless feeling the strain from growing rent and utility costs.
Other commodities and services saw varying rates of US inflation.
While used automobile inflation decreased by over a tenth, the rate of price increases for transportation, such as taxi rides, increased by more than a tenth from January to May.
