Summary:
In May, US consumer prices were flat as cheaper gasoline offset higher rental costs, but inflation remains too high for Fed rate cuts.
US CPI June
12/7/2024 (Thu)
Previous: 3.3% Forecast: 3.1%
US consumer prices were unexpectedly unchanged in May as cheaper gasoline and other goods offset higher costs for rental housing, but inflation remains too high for the Fed to start cutting interest rates before September.
The report also showed underlying inflation pressures abated significantly, with the cost of motor vehicle seeing the first and biggest monthly drop since October 2021.
Biden welcomed the benign CPI report, saying it showed "progress on lowering inflation." Price control could be among the factors that will determine the outcome of the November’s presidential election.
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