US consumer prices unchanged in May

The US Consumer Price Index (CPI) remained unchanged in May. The country's core CPI, which excludes variable energy and food prices, increased by 0.2 percent monthly and 3.4 percent annually in May. The US Department of Labor announced consumer price data for May. Accordingly, consumer prices in May were 0.0 percent compared to the previous month. Market expectations were for the CPI to increase by 0.1 percent during this period. The country's CPI increased by 3.3 percent annually in May. Thus, the annual CPI was also below the market expectation of 3.4 percent. On the other hand, inflation in the US had increased by 0.3 percent monthly and 3.4 percent annually in April. The country's core CPI, which excludes variable energy and food prices, increased by 0.2 percent monthly and 3.4 percent annually in May. The expectation was for a monthly increase of 0.3 percent and an annual increase of 3.5 percent. The latest figures announced along with the slowdown in the core CPI in April show that inflation has entered a downward trend. But policymakers have emphasized that they need to see price pressures ease for several more months before considering cutting rates. Officials say a single month of data does not constitute a trend. “The decline in inflation provides evidence that monetary policy is having the intended effect and moves the economy one step closer to the Fed’s 2% target,” Charles Schwab’s Richard Flynn said in a statement about the inflation data. Meanwhile, investors have almost fully priced in two rate cuts from the Fed this year, with the first move expected to come in November, a 25 basis point cut.