The torrid pace of US inflation may have eased slightly in May, but prices have remained high to the detriment of Americans' wallets, sending President Joe Biden and the Federal Reserve racing to help.
Consumer prices in the world's largest economy have soared by the fastest pace in more than four decades, with gas prices at the pump hitting new records daily amid the fallout from Russia's invasion of Ukraine as well as ongoing supply chain challenges due to the Covid-19 pandemic.
The Labor Department is set to release the May consumer price index data on Friday, which analysts expect will show a slightly higher monthly increase than in the prior month, but potentially saw a modest slowdown in the torrid annual pace. Sam Stovall of CFRA expects the rate slow to 8.1 percent but warned further declines are likely to be"glacial."Biden has tried to hammer home his optimistic message about the economic progress in the wake of the pandemic, including rapid GDP growth and record job creation, while pressing Congress to take action to lower costs on specific products, and go after firms such as shipping companies that are taking advantage of limited competition to impose steep price hikes.
The White House acknowledged inflation is likely to remain"elevated" in May, though Press Secretary Karine Jean-Pierre said Wednesday the administration continues"to believe the economy can transition from what has been a historic recovery... to stable steady growth."
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