US inflation falls to 3.3% in May

Hopes of Fed winter rate cut

US consumer price inflation (CPI) came in softer than expected in May at 3.3%, raising hopes for an early interest rate cut by the Federal Reserve.

This was lower than the flatline growth economists had predicted. Meanwhile, core inflation, which excludes volatile prices for food and energy, sat at 3.4%, also slightly below the expected 3.5%. According to the US Bureau of Labor Statistics, food prices rose 2.1% over the last twelve months, while the energy index increased by 3.7% during the same period. Fed rate cut 'off the table' as US economy adds 272,000 jobs Richard Flynn, managing director at Charles Schwab UK, said the drop provides evidence that monetary policy is "having its intended effect", while bringing the econom...