Inflation in the United States showed signs of cooling in May, recording the lowest increase since March 2021. According to recent data, the main Personal Consumption Expenditures (PCE) index, which excludes volatile food and energy costs, advanced just 0 .1% in the month of May compared to the previous month, meeting analysts’ forecasts and marking a slowdown compared to the 0.3% increase in April.

This indicator is a key measure for the Federal Reserve, which uses it to adjust its monetary policies. With the annual increase in core PCE standing at 2.6% in May, experts believe this is a positive development.

The report is part of a series of data that suggest a trend towards a slowdown in inflation. For example, the Consumer Price Index (CPI), another significant indicator, reported a 0.2% increase in May, below economists’ expectations.

Despite the recent good news, the Federal Reserve remains cautious. In a recent statement, it emphasized that interest rate cuts will only be considered when there is “greater confidence” in the path of inflation.

There has been modest progress toward our inflation target,” Fed Chairman Jerome Powell said at a press conference on June 12. Powell added that it is necessary “to see more good data to reinforce our confidence that inflation is moving sustainably toward 2 percent.”

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