U.S. May CPI, Below Expectations…Inflation Easing Expectations Grow

May US CPI Below Expectations (Source: US BLS)

The US Consumer Price Index (CPI) for May recorded a level lower than market expectations, raising expectations for inflation easing. The US Department of Labor announced that the May CPI rose 2.4% compared to the same month last year, slightly below the market forecast of 2.5%.

The month-on-month increase also remained at 0.1%, below the expectation of 0.2%. The Core CPI, excluding volatile food and energy, rose 2.8% from the previous year, showing a lower level than the market expectation of 2.9%.

This announcement is interpreted as an indicator supporting the possibility of a rate hold or cut by the Federal Reserve, reigniting expectations for a mild monetary policy across the financial market.