U.S. residents saw the cost of living rise much more slowly in May than previously. Inflation fell mainly due to lower energy costs. However, food and beverages became slightly more expensive.
The U.S. government reported that average prices were 4 percent higher than a year earlier. That’s the weakest inflation since March 2021, but still well above what the U.S. central bank wants. In April, everyday life became 4.9 percent more expensive for Americans.
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The Federal Reserve is currently meeting to discuss whether and by how much interest rates should be raised. Chairman Jerome Powell will announce the decision on Wednesday.
Core inflation
However, core inflation, excluding sharp fluctuations in fuel and food prices, did not decline. Prices for this basket of products rose by 0.4% compared to the previous month, roughly equal to the level in April. This indicator is very important for the Fed's interest rate policy.
