Cheaper eggs, gas lead inflation lower in May, but higher prices pop up elsewhere

Inflation slowed down in May due to cheaper eggs and gasoline costs, but higher prices emerged elsewhere.

By the numbers: Consumer prices in May were up 4% from a year ago, which is the smallest annual increase since March of 2021.
* Prices rose 0.1% between April and May, with rising rents and used car prices being offset by cheaper gasoline and electricity.
* However, “core” inflation, excluding volatile food and energy prices, was 5.3% for the twelve months ending in May.

Meeting the challenge: The Federal Reserve has raised interest rates ten times in the last 15 months in an effort to control rising prices.
* Investors expect that the Fed will leave interest rates unchanged at this week’s meeting, but more rate hikes may follow if inflation remains high.

A shifting target: Although energy and egg prices have fallen due to improvements in global supply chains, the cost of services such as restaurant meals and car repair continue to rise.

View original article on NPR

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