US inflation cooled in May in sign that price pressures may be easing

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Inflation in the United States eased last month in a hopeful sign that a pickup in prices that occurred early this year may have passed. The trend, if it holds, could move the Federal Reserve closer to cutting its benchmark interest rate from its 23-year peak. Consumer prices excluding volatile food and energy costs — the closely watched “core” index — rose 0.2% from April to May. That was down from 0.3% the previous month and was the smallest increase since October. Measured from a year earlier, core prices rose 3.4%, below last month’s 3.6% increase. Fed officials are scrutinizing each month’s inflation data to assess their progress in their fight against rising prices.