Inflation in the United States slowed in May, according to data released by the Bureau of Labor Statistics on June 13. The Consumer Price Index (CPI) rose 4% from a year ago, down from 4.2% in April. This is the first time since March 2021 that inflation has fallen below 5%.
There are a number of factors that may have contributed to the slowdown in inflation. One factor is that the supply chain disruptions that have been driving up prices are starting to ease. Another factor is that the Federal Reserve has begun raising interest rates, which is expected to help cool demand and bring inflation down.
While the recent slowdown in inflation is welcome news, it is important to remember that inflation is still running well above the Federal Reserve’s target of 2%. The Fed is expected to continue raising interest rates in an effort to bring inflation down to its target.
It is still too early to say whether the Fed will be successful in bringing inflation down to its target. However, the recent slowdown in inflation is a positive sign and suggests that the Fed’s efforts may be starting to pay off.
Here are some additional details about the recent slowdown in inflation:
- The core CPI, which excludes food and energy prices, rose 3.6% from a year ago, down from 3.9% in April. This is the first time since April 2021 that core inflation has fallen below 4%.
- The prices of used cars and trucks have fallen sharply in recent months. This is due in part to the easing of supply chain disruptions.
- The prices of food have also started to come down. This is due in part to the good harvest in the United States.
The recent slowdown in inflation is good news for consumers and businesses. It means that prices are rising at a slower pace, which gives consumers more purchasing power and helps businesses to keep their costs under control.
However, it is important to remember that inflation is still running above the Federal Reserve’s target. The Fed is expected to continue raising interest rates in an effort to bring inflation down to its target.
