Consumer prices were unchanged from last month, another signal that inflation could finally be cooling. This morning’s Consumer Price Index data for May showed that inflation rose 3.3% over the last 12 months, slightly down from April’s 3.4%. Core inflation, which excludes volatile food and energy prices, rose 0.2% month over month, also slightly down from 0.3% in April.
High housing costs prevented inflation numbers from sinking even lower, with the shelter index up 0.4% for the fourth month. But gas prices dropped a whopping 3.6%, according to the report.
Today’s inflation numbers are unlikely to affect the Federal Reserve’s vote on interest rates later today. However, they could provide another strong data point to convince the Fed to lower rates later this year, maybe as soon as next month.
Read more: Inflation Flatlines in May, Bolstering Hopes That the Fed Could Cut Interest Rates by July
