US inflation rose 4% in May, lowest in 2 years
By Shannon Thaler
June 13, 2023 8:51am
US data from May showed that inflation is decelerating — but stubborn price gains showed that the Federal Reserve remains under pressure to hike interest rates this year.
The Consumer Price Index — a closely-monitored measure of inflation that tracks changes in the costs of everyday goods and services — rose 4% in May versus a year earlier, according to the US Bureau of Labor Statistics.
That was a step down from April’s 4.9% increase and marks the smallest monthly increase in more than two years. Last June, inflation had peaked at 9.1%.
The latest number gives breathing room for the Federal Reserve — which has hiked rates in 10 consecutive moves since early 2022 — to opt for a long-anticipated pause when it meets this week.
Still, core CPI, which excludes volatile food and energy prices, rose a concerning 0.4% from a month ago, and 5.3% from one year ago. Month over month, prices increased by 0.1%, according to the Bureau of Labor Statistics’ report released on Tuesday.
Rising housing costs were the largest contributor to last month’s increase, followed by used cars and trucks, which increased 4.4%.
Stock futures rose ahead of the opening of Tuesday’s trading session.
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https://nypost.com/2023/06/13/us-inflation-rose-4-in-may-lowest-in-2-years/