US inflation rate in May falls to 3.3%

WASHINGTON.— El Consumer price index (CPI) of USA fell by one tenth in May to 3.3% compared to the April figure, meaning it has been stagnant above the 2% target for the entire year. Federal Reserve (Fed) pese a los high interest rates.

In the last 12 months, the increase in Underlying inflationwhich excludes volatile energy and food prices, was 3.4%, two-tenths below the April data, and the lowest figure since April 2021.

Compared to April, the increase was 0.2%. Both figures are slightly below expectations by analysts, who are awaiting signals that will give the Federal Reserve reasons for a gradual lowering of interest rates.

Wall Street celebrated the inflation data with gains at first glance, but with an eye on the press conference of the president of the Fed, Jerome Powell.

Energy prices rose 3.7% over the 12 months through May and food prices rose 2.1%.

Prices remain far from the Federal Reserve’s 2% target, which today ends its two-day monthly meeting to determine the progress of the monetary politics and with analysts waiting to see whether the Open Market Committee The issuer believes that there is room for rate cuts this year.

Part of the decline in the overall inflation figure was due to a reduction in the cost of gasoline (-3.6% compared to April), while the items for air travel, new vehicles, communication, recreation and clothing registered reductions compared to April.

On the increase side, rents stood out, rising 0.4% compared to April and 5.4% compared to May 2023.

There were also increases in restaurant prices, which also rose 0.4% compared to April, medical costs (0.3%), used vehicles (0.6%) and education (0.4%).

The campaign for the re-election of the American president, Joe Bidenindicated that these inflation data are further evidence of the economic improvement during the Democratic politician’s term.

“Joe Biden inherited a Economy facing Donald Trump’s precipice and now he is leading the great American comeback. Under his leadership wages are rising, inflation is contained and the economy is the strongest in the world,” said the campaign spokesman, James Singer.

For its part, the Republican Party The Republican National Committee said that prices have risen by 20% since Biden took office. “The incompetent Biden administration promised that inflation would be ‘transitory,’ but it was lying,” the Republican National Committee said in a statement.

Despite inflation having moderated since the summer of 2022, the Federal Reserve is still trying to steer monetary policy to keep price increases at around 2%.

The Fed, which is expected to keep rates between 5.25% and 5.5% today, hopes to be able to announce quarter-point cuts this year, but persistent inflation and the strength of the labor market and wages do not allow for such a move.

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