Inflation in the US slowed to 3.3%

The annual inflation rate in the US slowed to 3.3% in May 2024, down from 3.4% in April and below the forecast of 3.4%. Compared to the previous month, the consumer price index remained unchanged, also below expectations of a 0.1% increase, as lower gasoline prices were offset by higher housing costs. Meanwhile, core inflation slowed to 3.4% year-over-year, below the consensus forecast of 3.5%, and the monthly core inflation rate decreased to 0.2% from 0.3%, also better than the expected 0.3%.

Annual core inflation in the US is below forecasts

The annual core inflation rate in the US, which excludes volatile items such as food and energy, fell to 3.4% in May 2024 from 3.6% the previous month and was below market forecasts of 3.5%. Over the past year, the housing index increased by 5.4%, accounting for more than two-thirds of the total 12-month rise in the all items index excluding food and energy. Other indices with notable increases over the past year include motor vehicle insurance (+20.3%), medical care (+3.1%), recreation (+1.3%), and personal care (+2.9%).