Key facts
- US consumer prices were unchanged in May.
- The annual inflation rate slowed to 3.3% in May.
- Core CPI, excluding food and energy, rose 0.2% in May.
- The annual core inflation rate slowed to 3.4% in May.
US consumer prices unexpectedly held flat in May, indicating a cooling inflation trend. The Consumer Price Index (CPI) showed no monthly increase, following a 0.3% rise in April. Annually, inflation eased to 3.3% from 3.4% in April.
Core inflation, which excludes volatile food and energy prices, also showed signs of moderation. Core CPI rose 0.2% month-on-month, the smallest increase since October, and decelerated to 3.4% year-on-year from 3.6% in April. These figures came in below economists' expectations, offering some relief amid persistent price pressures.
The data suggests that inflation may be moving closer to the Federal Reserve's 2% target, potentially influencing the central bank's stance on interest rates.