CPI Shows Slowing Inflation

The latest data from the Bureau of Labor Statistics shows that inflation was 4% in May, the lowest since March 2021. Federal Reserve officials may see this as a positive indicator to pause the increase in interest rates potentially. The prices of goods and services experienced slower growth than the previous year, with lower gasoline prices contributing to the overall moderation in price increases. The cost of shelter used cars, and motor vehicle insurance increased while airfares and household furnishings decreased. Service prices, excluding housing and energy, increased slightly from the previous month but declined compared to the peak last year.