US Inflation Eases to 3.3% in May; Core Inflation at 3.4%

Jun 12, 2024, 12:58 PM

Inflation in the United States showed signs of easing in May, with the Consumer Price Index (CPI) rising 3.3% year-over-year, down from 3.4% in April. Monthly inflation remained unchanged at 0.0%, compared to a 0.3% increase in April, marking the lowest monthly inflation in more than a year. Core inflation, which excludes volatile food and energy prices, rose 3.4% year-over-year, marking the slowest pace in more than three years. The core CPI increased by 0.2% from April, with core inflation month-over-month at +0.16%. A decline in gas prices contributed to the overall cooling, although shelter costs, which increased by 5.4% year-over-year, continued to exert upward pressure. Core CPI excluding shelter was up just 1.9% YoY in May. The data, released by the Bureau of Labor Statistics, suggests that the price pressures that surged earlier in the year may be subsiding, providing a hopeful sign ahead of the Federal Reserve's upcoming meeting.