The rate of inflation reportedly eased in May to the lowest annual rate in about two years based on a Labor Department report on Tuesday.
The consumer price index, which measures changes in various goods and services, rose just 0.1% for the month, bringing the annual level down to 4%. The 12-month increase was the smallest since March 2021, when inflation was just beginning to rise close to its highest reading in 41 years.
Core inflation rose 0.4% in the month and was still up 5.3% from a year ago, suggesting that while price pressures have eased somewhat, consumers are still under pressure.
The reading of the figure is in line with the Dow Jones consensus estimate. A 3.6% fall in energy prices helped keep CPI gains in check for the month. Food prices rose only 0.2%.
Elsewhere, used vehicle prices rose 4.4%, the same as in April, while transport services rose 0.8%.
The market showed little reaction to the release of the data because it coincided with the expectation of the follow-up action to be taken by the FED. Stock market futures were slightly positive, despite a sharp fall in Treasury yields.
The market now expects a near 100% chance that the Fed will not raise interest rates on Thursday.
