This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive
compensation for actions taken through them.
Year-on-year inflation stood at 4% in May, down from 4.9% in April, according to the consumer price index (CPI) report by the US Bureau of Labor Statistics (BLS). The data comes before the meeting of Federal Reserve policymakers, who can either skip or announce another interest rate hike on June 14.
Core Inflation Was 5.3% in May 2023
New CPI data released on Tuesday showed that the annual inflation rate in the US fell to 4.0% in May 2023, compared to economists’ expectations of 4.1%. The report represents a notable drop from the 4.9% rate in April.
Month-on-month, inflation rose by 0.1%. This compares to a monthly increase of 0.4% between March and April.
Annual Core CPI, a vital measure of inflation that excludes volatile food and energy prices, stood at 5.3%, to the expected increase of 5.3%. Monthly, core CPI climbed by 0.4%, while economists estimated a 0.4% surge. Earlier CPI reports showed that core inflation rose by 5.5% and 0.4% annually and month-over-month, respectively.
Take a Break or One Final Interest Rate Hike in July?
The latest inflation data comes ahead of the Federal Open Market Committee (FOMC). US central bank officials are set to decide on their next move regarding interest rates and determine the long-term monetary policy trajectory.
Investors and market watchers hope today’s data will convince the Federal Reserve policymakers to skip a rate hike this month – a move could reignite optimism in the US stock market after a tumultuous 2022. While the annual inflation rate declined significantly from its peak of 9.1% in June last year, the core CPI has been much more difficult to tame.
Since May 2022, the Fed has consistently raised interest rates to bring down 4-decade-high inflation, bringing the federal funds rate to a 5.00% – 5.25% range – the highest level since September 2007. But even though markets are mainly expecting the Fed to slam on the brakes, another likely possibility is a final rate hike in July before an extended pause estimated to last until early 2024, according to CME Group’s gauge of trading in the Fed funds futures market.
This article originally appeared on The Tokenist
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.