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Business News/ Economy / US consumer inflation cools for 11th straight month in May, rises just by 0.1%
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US consumer inflation cools for 11th straight month in May, rises just by 0.1%

Earlier, the consumer price index (CPI) jumped 4.0 percent from a year ago, in line with analyst expectations and down from a 4.9 percent rise in April.

(FILES) People shop for produce at a market in Manhattan on April 12, 2023 in New York City. Photo by Spencer PLATT / GETTY IMAGES NORTH AMERICA / AFP) (AFP)Premium
(FILES) People shop for produce at a market in Manhattan on April 12, 2023 in New York City. Photo by Spencer PLATT / GETTY IMAGES NORTH AMERICA / AFP) (AFP)

The United States consumer inflation cooled for an 11th straight month in May, the Labor Department said on 13 June, reported news agency AFP.

The CPI rose 0.1 percent in May, decelerating from 0.4 percent in April, the Labor Department said.

Excluding the volatile food and energy components, consumer inflation was up 5.3 percent over the last 12 months.

Earlier, the consumer price index (CPI) jumped 4.0 percent from a year ago, in line with analyst expectations, and down from a 4.9 percent rise in April.

Following the new CPI data announced, stock markets jumped raising hopes that the Federal Reserve will pause its interest rate-hike campaign. In efforts to combat elevated inflation, the US central bank has raised interest rates 10 straight times. Investors fear that higher borrowing costs will tip the economy into recession.

Wall Street indices advanced at the open while European markets climbed after official figures showed US consumer prices rose by 4.0 percent year-on-year in May, compared to 4.9 percent in April.

The dollar fell against other major currencies as the greenback usually benefits from higher interest rates.

The new data from the Labor Department arrived amid the Federal Reserve officials are set to begin a two-day policy meeting, with the figures that may have a bearing on their interest rate decision at the end of the gathering.

While the US central bank has embarked on an aggressive campaign of rate hikes, lifting the benchmark lending rate 10 times in a row since early last year, it is widely anticipated to pause this week.

But analysts caution that Fed policymakers are likely looking for a more sustained trend of cooling growth before they end their cycle of rate hikes.

With agency inputs. 

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ABOUT THE AUTHOR
Saurav Mukherjee
A business media enthusiast...believe to listen more, than just blabbering like others.
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Published: 13 Jun 2023, 06:30 PM IST
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