WASHINGTON (AP) — Inflation in the United States eased in May for a second straight month, a hopeful sign that a pickup in prices that occurred early this year may have passed.
WASHINGTON — Inflation in the United States eased in May for a second straight month, a hopeful sign that a pickup in prices that occurred early this year may have passed. The trend, if it holds, could move the Federal Reserve closer to cutting its benchmark interest rate from its 23-year peak.
Wednesday's report suggested that consumers are beginning to get some relief from the price spikes of the past three years. Grocery costs were unchanged, on average, from April to May, after actually falling 0.2% the previous month. Food prices have risen just 1% over the past 12 months, though they're still up about 20% from three years ago.
“It's certainly welcome news,” said Tom Porcelli, chief U.S. economist at PGIM Fixed Income."It drives home that the inflation challenge in the United States is not as challenging as monetary policy makers believe.” Persistently elevated inflation has posed a vexing challenge for the Fed, which raises interest rates — or keeps them high — to try to slow borrowing and spending, cool the economy and ease the pace of price increases.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. inflation cooled in May in sign that price pressures may be easingThe trend, if it holds, could move the Federal Reserve closer to cutting its benchmark interest rate from its 23-year peak
Read more »
US inflation cooled in May in sign that price pressures may be easingWASHINGTON (AP) — Inflation in the United States eased in May for a second straight month, a hopeful sign that a pickup in prices that occurred early this year may have passed.
Read more »
Inflation may have cooled in May, but Federal Reserve is seeking sustained improvementWASHINGTON (AP) — Less-expensive gas likely slowed U.S. consumer inflation in May. But when the government reports the latest monthly price data Wednesday...
Read more »
Price cuts, weaker spending may boost Fed's faith in inflation outlookA new round of price cuts by major U.S. retailers and data showing a consumer spending slowdown may boost the Federal Reserve's confidence in falling...
Read more »
Price cuts, weaker spending may boost Fed's faith in inflation outlookExplore stories from Atlantic Canada.
Read more »
Inflation slows in Alberta, Calgary's inflation the highest in CanadaDespite inflation slowing in Alberta, the province's rent prices have increased by nearly twice the national average.
Read more »