In May, the Consumer Price Index saw a year-over-year increase of 3.3%, slightly below the forecasted rate and the 3.4% increase in April. Despite this unexpectedly unchanged from April to May, indicating that US inflation is still high but has improved compared to 2022.
Core CPI, which excludes food and energy prices, also rose by 3.4% year-over-year in May, below the expected increase of 3.5%. In May, Core CPI increased by only 0.2%, lower than anticipated increase of 0.3%.
The Federal Reserve is set to announce its interest rate decision later on Wednesday, with expectations that the target range for the federal funds rate will remain the same. While interest rate cuts may not be immediately seen by Americans, it is possible that there may be rate cuts later this year. David Kelly, the chief global strategist at J.P. Morgan Asset Management, believes there could be two rate cuts in September and December of this year.
This story is still developing and updates may follow as more information becomes available about inflation measures and interest rates decisions made by the Federal Reserve