{"id":2265756,"date":"2024-06-12T09:29:11","date_gmt":"2024-06-12T13:29:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-fell-slightly-to-3-3-in-may\/"},"modified":"2024-06-12T09:34:57","modified_gmt":"2024-06-12T13:34:57","slug":"inflation-fell-slightly-to-3-3-in-may","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-fell-slightly-to-3-3-in-may\/","title":{"rendered":"Inflation dropped to 3.3% in May"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-fell-slightly-to-3-3-in-may%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2265756&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Inflation\u200c in the United States decreased slightly\u200b to \u20643.3%\u2064 over the year \u2063ending \u2064in \u200cMay, marking a modest\u200b reduction \u2063from \u2064previous figures and a positive development\u200d in the economic\u200b landscape as the Federal Reserve deliberates on the timing to start reducing interest\u200c rates. This update \u200cfrom \u2063the Bureau of Labor Statistics, reflecting on the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/manchin-every-senator-thinks-minimum-wage-should-be-increased\/\" title=\"Manchin: Every Senator Thinks Minimum Wage Should Be Increased\">consumer price index<\/a>, boosts President Joe\u200d Biden&#8217;s administration, which has\u2064 been highlighting positive economic\u200b data to improve public perception of its economic\u200c management. \u200cAlthough the inflation rate \u200cremains\u2063 above\u200b the Fed&#8217;s\u2062 target of 2% and \u200cmonthly inflation was flat, the \u2064downward \u200dtrend in \u200c&#8221;core \u200dinflation&#8221;, which\u2062 excludes unstable food and energy prices, shows\u200c that the Fed&#8217;s past rate \u2064hikes are starting \u200bto have an\u2063 impact. High rates\u2063 have been in place\u200c as part of the Fed\u2019s strategy to control \u200binflation,\u2064 and\u2063 the recent data reinforces the likelihood of upcoming rate cuts, although the \u2062timing is still uncertain. Economists point out that while the inflation data suggest \u200cpotential for\u200b rate cuts,\u2062 the Fed \u2064should remain cautious.<\/p>\n<p>Notably, housing costs \u200chave \u200ccontinued \u200cto push the overall Consumer Price \u200bIndex \u200b(CPI) higher with significant\u200d annual increases,\u2064 even as energy and vehicle prices showed declines.\u2063 Gasoline prices dropped significantly, yet energy prices are still \u200dup\u2064 from last year. While\u2062 grocery prices held steady from the previous month, they have seen a\u200d significant increase since Biden took office. This\u2064 combination of\u200d trends illustrates the\u200d ongoing\u2063 pressure on different sectors of the economy, affecting overall \u200cinflation and potentially influencing future monetary policy decisions.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/inflation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Inflation<\/a> fell a tenth of a percentage point to 3.3% for the year ending in May, a welcome development as the\u00a0Federal Reserve\u00a0considers when it will begin cutting <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\/\" target=\"_blank\" rel=\"noreferrer noopener\">interest rates<\/a>.<\/p>\n<p>The data reported on Wednesday by the Bureau of Labor Statistics in an update to the\u00a0consumer\u00a0price\u00a0index\u00a0are encouraging news for President Joe Biden. The <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/white-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">White House<\/a> has been emphasizing any positive\u00a0inflation\u00a0data alongside the country\u2019s robust labor market as it aims to improve the public\u2019s estimation of Biden\u2019s management of the economy.<\/p>\n<p>It is also positive for the Fed, which has worked to tamp down\u00a0inflation\u00a0for two years by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-delivers-bad-news-about-expectations-for-inflation-raising-interest-rates-report\/\" title=\"Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates: Report\">raising interest\u00a0rates<\/a>. The decline further lends credence to the general consensus that the Fed will <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-officials-worried-about-ending-inflation-battle-prematurely-minutes-show\/\" title=\"Fed officials worried about ending inflation battle prematurely, minutes show\">begin cutting\u00a0rates<\/a>\u00a0sometime this year, although the exact timing is unclear.<\/p>\n<p>Still, inflation has a long way to go before reaching the Fed\u2019s 2% level.<\/p>\n<p>On a month-to-month basis,\u00a0inflation was flat.<\/p>\n<p>\u201cCore inflation,\u201d which doesn\u2019t include volatile food and energy prices, fell to two-tenths of a percentage point to 3.4% for the year ending in May. Overall, core inflation has generally trended down over the past 12 months, in evidence that the Fed\u2019s tightening is starting to pay off.<\/p>\n<p>\u201cThe Fed\u2019s recession-level rate hikes are working, and as demand and inflation slow, it is time to reduce interest rates marginally,\u201d said Chris Rupkey, chief economist at FWDBONDS. \u201cThe inflation data are sending the Federal Reserve a message, and it looks like they better keep a couple of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-banks-are-flush-with-cash-nobody-wants-to-borrow\/\" title=\"Chinese Banks Are Flush With Cash Nobody Wants to Borrow\">interest rate cuts<\/a> on the table this year because the market sure is.\u201d<\/p>\n<p>Housing costs pushed the CPI higher last month. Shelter costs rose 0.4% over the month and 5.4% over the year. Shelter prices contributed two-thirds of the annual increase in overall inflation.<\/p>\n<p>The energy index fell 2% over the month, led by a 3.6% decrease in gasoline prices. Energy prices are now up more than 3.7% from this time last year.<\/p>\n<p>Grocery prices were flat in May, but the price of food at home is up about 1% from a year ago. Still, compared to just a few years ago, when Biden was sworn into office, grocery prices have jolted by more than 20% \u2014 causing pain for families.<\/p>\n<p>Car prices have also come down from peaks notched during the pandemic. New vehicle prices are down nearly 1% from a year ago, and used car prices have fallen 9.3% over the past 12 months.<\/p>\n<p>Annual inflation peaked at about 9% in June 2022. Although it has since fallen, it is still running uncomfortably higher than the Fed\u2019s 2% target.<\/p>\n<p>Inflation has been blamed on various factors on both the supply and demand sides of the equation. Republicans have argued the explosion of stimulus spending during the pandemic and ultralow interest rates supercharged price growth. Democrats have been pointing to supply-side problems and noted that inflation increased in most Western countries, not just the United States.<\/p>\n<p>Biden has become a major target of voters\u2019 ire over the higher prices. Biden\u2019s economic approval ratings are underwater, which is bad news for the president, given he is in a close election-year contest with former President Donald Trump, the expected Republican nominee.<\/p>\n<p>Consumer sentiment has taken a hit as a result of the too-high inflation and the elevated interest rate environment.<\/p>\n<p>In May, the University of Michigan Consumer Sentiment Index dropped to 69.1 \u2014 that marks a 10.5% drop in sentiment over the past month alone. The last time sentiment was this low was November 2023.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/strong><\/a><\/p>\n<p>Inflation and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/janet-yellen-as-congress-for-billions-to-help-other-countries-debt-relief-climate-change-initiatives\/\" title=\"Janet Yellen As Congress For Billions To Help Other Countries\u2019 \u2018Debt Relief,\u2019 \u2018Climate Change\u2019 Initiatives\">higher interest rates<\/a> are overshadowing some positives in the economy. In many ways, the economy is not sputtering and has remained relatively robust. GDP growth, a broad measure of the country\u2019s economic output and a key recession indicator, has been positive. The unemployment rate has remained at low levels, historically speaking.<\/p>\n<p>The economy <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3031095\/economy-added-272000-jobs-in-may-the-key-facts-and-figures\/\" target=\"_blank\" rel=\"noopener\" title>added 272,000 jobs<\/a> in May, and the unemployment rate rose a tenth of a percentage point to 4%, the Bureau of Labor Statistics reported last Friday.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation dropped to 3.3% for the year ending in May, down by 0.1%. This positive trend, reported by the Bureau of Labor Statistics, comes as the Federal Reserve contemplates interest rate cuts. This development is encouraging for President Joe Biden, whose administration highlights favorable inflation data<\/p>\n","protected":false},"author":2683,"featured_media":2265757,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/shopping-inflation-1024x591.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2265756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/shopping-inflation-1024x591.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2265756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2265756"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2265756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2265757"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2265756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2265756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2265756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}