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Inflation slows again to 4% – its lowest level in more than two years – bolstering hopes Fed will press pause on interest rate hikes tomorrow
- Inflation has slowed to a 4 percent annual rate
Inflation in the US has slowed to a 4 percent annual rate, the lowest pace of price increases since March 2021.
The latest statistics released by the US Labor Department on Wednesday showed that inflation grew by just 0.1 percent between April and May – after increasing 0.4 percent last month.
The 4 percent annual inflation rate is well below the 9.1 percent peak seen last June, and down from April’s 4.9 percent increase.
It comes just before Federal Reserve officials begin their two-day policy meeting to decide their next steps to cool inflation, which they would like to see at 2 percent.
This downward trend bolsters hopes that the Fed will forego an interest rate rise this week after 10 consecutive moves since March 2022.
More to follow.
