US inflation cools in May, boosting hopes of Fed rate cut
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US inflation remained stable in May, with a modest increase in service costs offset by the largest drop in goods prices in six months. The report from the Commerce Department also showed consumer spending growth and hints at the Federal Reserve's aim for a controlled economic slowdown through core inflation moderation. The flat reading in the personal consumption expenditures (PCE) price index last month followed an unrevised 0.3% gain in April. Goods prices fell 0.4%, the biggest drop since November. The cost of services increased 0.2%, lifted by higher prices for housing and utilities as well as healthcare. In the 12 months through May, the PCE price index increased 2.6% after advancing 2.7% in April. Financial markets saw a roughly 68% chance that the Fed's policy easing would start in September compared to about 64% before the data.

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https://m.economictimes.com/markets/stocks/news/us-inflation-cools-in-may-boosting-hopes-of-fed-rate-cut/articleshow/111355533.cms