<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1656592919045,"cms.content.publishUser":{"_ref":"00000162-07af-d172-a563-4fefeeac0001","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1656592919045,"cms.content.updateUser":{"_ref":"00000162-07af-d172-a563-4fefeeac0001","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_56454796", "obj": {"id":"27789","width":"16","height":"9","video":"1042573"} }); ","_id":"00000181-b4a1-da7c-a7c7-f5e5e2160000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedInflation eased in May, according to the metric favored by officials at the Federal Reserve.
Headline inflation stood steady at 6.3% in the personal consumption expenditures index, the Bureau of Economic Analysis reported Thursday morning.
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But “core” inflation — that is, with the volatile prices of food and energy stripped out — fell, from 4.9% to 4.7%. May was the third month in a row that core inflation fell, a possible signal for the central bank that inflation pressures may be lessening.
The PCE index is separate from the more widely known consumer price index, which showed inflation rising to a blistering 8.6% in May.
Soaring inflation has significantly hurt President Joe Biden’s approval ratings and has undercut support for his spending agenda. It has also led the Fed to scramble in recent months to tighten monetary policy by hiking its interest rates rapidly — including with unusually large rate hikes of three-fourths of a percentage point this month and last.
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While Thursday’s data are possible signals that upward price pressures may be peaking, they are not likely to dissuade the Fed from further rate hikes to bring inflation down to its target, which is just 2%.
“From a policy perspective, with the threat from durable inflation in focus, these data are not likely to change the rate trajectory, which remains firmly upward,” wrote Rubeela Farooqi, the chief U.S. economist for High Frequency Economics, in a note Thursday morning.
