US residents saw the cost of living rise much less in May than before. Inflation has come down mainly because energy costs have gone down. However, food and drinks, on the other hand, have become a bit more expensive.
The US government announced that the average price level was 4% higher than a year earlier. This is the weakest inflation since March 2021, but still well above what the US central bank wants. In April, daily life for Americans became 4.9% more expensive.
The Federal Reserve is currently meeting to discuss whether and how much to raise interest rates. Chairman Jerome Powell will announce the decision Wednesday.
Basic inflation
However, core inflation, without volatile fuel and food prices, has not declined. This basket of commodities rose 0.4 percent in price from the previous month, roughly equal to April’s level. This indicator is very important to the Federal Reserve’s interest rate policy.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
