The Consumer Price Index held flat in May 2024, though it increased 3.3% from a year ago. Both numbers were 0.1 percentage points below market expectations. Excluding volatile food and energy prices, core CPI increased 0.2% in May and 3.4% from a year ago, also slightly below forecasts. Energy prices dropped 2% in May, helping slow inflation, while food prices rose just 0.1%. Gas prices fell 3.6%. Shelter costs, including rent, continued rising fast increasing 0.4% in May and up 5.4% over the last year. Housing remains a major driver of inflation. The softer-than-expected CPI data reduced expectations the Federal Reserve will raise interest rates aggressively, with a rate cut now seen as possible in September.
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00:00It's Benzinga, and here's what's on the block.
00:02The Consumer Price Index held flat in May, though it increased 3.3% from a year ago.
00:08Both numbers were 0.1 percentage point below market expectations.
00:12Excluding volatile food and energy prices, core CPI increased 0.2% in May and 3.4% from
00:18a year ago, also slightly below forecasts.
00:22Energy prices dropped 2% in May, helping slow inflation, while food prices rose just 0.1%.
00:28Gas prices fell 3.6%.
00:30Shelter costs, including rent, continued rising fast, increasing 0.4% in May and up 5.4% over
00:37the last year.
00:38Housing remains a major driver of inflation.
00:41The softer-than-expected CPI data reduced expectations the Federal Reserve will raise
00:45interest rates aggressively, with a rate cut now seen as possible in September.
00:49For all things money, visit Benzinga.com.