- The consumer price index, an inflation gauge, rose 3.3% year-on-year in May.
- This is slightly below April's forecast of 3.4%.
- The Consumer Price Index was unexpectedly unchanged from April to May.
The year-over-year change in the Consumer Price Index for May was slightly below expectations, and the change in core CPI was also below expectations.
According to a news release issued Wednesday by the Bureau of Labor Statistics, the CPI rose 3.3% from May 2023 to May of this year. The forecast given by Investing.com was 3.4%, which would be the same year-over-year increase as in April.
The Consumer Price Index was unchanged from April to May. It was expected to increase 0.1% following a 0.3% increase from March to April.
Core CPI, which excludes food and energy, rose 3.4%. Year-over-year growth in May. According to Investing.com, the increase was It would have been 3.5%, which would have meant a lower interest rate than the previous 3.6%.
Core CPI rose 0.2% month-on-month in May, below the expected 0.3% and the previous reading of 0.3%.
Inflation measures such as the Consumer Price Index (CPI) suggest that U.S. inflation remains too high, though it looks much better compared to 2022. The Fed's interest rate decision is due to be announced later on Wednesday, with the target range for the federal funds rate expected to remain the same.
Americans probably won't see any interest rate cuts for now, but cuts could come later this year.
“I think the economy will soften and cool enough this year to start cutting rates,” David Kelly, chief global strategist at JPMorgan Asset Management, told Business Insider earlier this month. “And if I had to bet, I'd say we'll see two rate cuts, one in September and one in December.”
This is a developing story, please check back for updates.
