Inflation report for May 2024 reveals how the U.S. economy is looking now
One of the most-watched inflation metrics showed a slight slowdown Wednesday, a sign that the price growth that has bedeviled the U.S. economy may be easing.
One of the most-watched inflation metrics showed a slight slowdown Wednesday, a sign that the price growth that has bedeviled the U.S. economy may be easing.
Consumer prices rose 3.3% on a 12-month basis in May compared to 3.4% in April, according to data released by the Bureau of Labor Statistics. That was also below expectations for an unchanged 3.4% reading.
The fine print of the report also provided economists with some reasons for optimism that inflation — the rate at which prices rise — is normalizing.
On a monthly basis, inflation was 0% — the lowest since July 2022. Excluding volatile food and energy prices, the monthly reading was 0.2% — the lowest since October.
Excluding more volatile food and gas items, the 12-month consumer price index (CPI) slowed to 3.4% — also an improvement from the 3.6% seen last month, ahead of expectations for 3.5%, and the smallest increase since April 2021.
Rating: 5