U.S. CPI moderated nine-tenths of a point in May to 4% year-on-year
The Consumer Price Index (CPI) in the United States stood at at 4% year-on-year in the month of Maywith a moderation of nine tenths compared to April in what represents its smallest advance since March 2021, the Bureau of Labor Statistics of the Department of Labor of the country’s Labor Department revealed Tuesday.
However, the underlying index, which excludes food and energy prices from its calculation due to their greater volatility, closed the fifth month of 2023 with a increase of 5.3%.two tenths of a percentage point less than the previous month. Meanwhile, groceries rose 6.7% year-on-year, while energy was 11.7% cheaper in May than twelve months earlier.
In monthly rates, the overall index variable experienced an advance of 0.1%.which represents a containment of three tenths of a point, while the underlying variable was at 0.4%, unchanged from the previous record.
To address rising prices, the Federal Reserve (Fed) raised interest rates by 25 basis points to a target range on May 3 of. between 5% and 5.25%.
The next possible revision to this figure will be announced on June 14, when Fed policymakers will meet again and must weigh the risks of pursuing their monetary tightening policy following the release of the Fed’s latest Beige Book, which found that the economy remained stagnant in May, although hiring and prices cooled.
With respect to GDP, the world’s leading economy. grew by 0.3%. in the first quarter of 2023 compared to the last three months of last year. Thus, the U.S. moderated its growth by half compared to the previous 0.6% expansion.