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

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Inflation in the United States eased in May for a second straight month, a hopeful sign that an acceleration of 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 the smallest such increase since October. Even as overall inflation moderates, such necessities as groceries, rent and health care are much pricier than they were three years ago — a continuing source of public discontent and a political threat to President Joe Biden’s re-election bid.