Fresh data released on Wednesday showed that U.S. inflation eased more than anticipated in May, offering potential relief for policymakers and markets hoping for a slowdown in price pressures.
According to the report, the core inflation rate — which excludes volatile food and energy prices — rose just 0.1% month-on-month, falling short of the 0.3% estimate. On an annual basis, core inflation came in at 2.8%, slightly below expectations of 2.9%.
The overall Consumer Price Index (CPI) also registered a 0.1% month-on-month increase, underperforming the 0.2% estimate, while the year-on-year inflation rate stood at 2.4%, versus the 2.5% forecast.
The softer-than-expected inflation numbers could support the case for the Federal Reserve to maintain interest rates at current levels in the near term, as officials balance cooling prices with broader economic resilience. Markets are now likely to closely watch the Fed’s upcoming policy signals for further clues on its stance.
