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United States Inflation May 2024

United States: Inflation falls to lowest level since February in May

Inflation inched down to 3.3% in May, following April’s 3.4%. May’s result marked the weakest inflation rate since February and was below market expectations, but was still well above the Fed’s 2.0% target. The moderation was broad-based, with reduced price pressures recorded for housing, transportation, and food.

Accordingly, the trend pointed down mildly, with annual average inflation coming in at 3.3% in May (April: 3.4%). Meanwhile, core inflation fell to 3.4% in May from April’s 3.6%, also undershooting market expectations.

Finally, consumer prices increased 0.01% from the previous month in May, below the 0.31% rise logged in April. May’s result marked the weakest reading since July 2022.

Inflation is forecast to dip slightly further by the end of the year, but should stay above the Fed’s target and higher than in other G7 countries due to resilient domestic demand.

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