Consumer prices rose just 0.1 percent in May and are up 4 percent over the past year, according to key inflation data released yesterday by the Labor Department, The Hill reported. Inflation as measured by the consumer price index (CPI) dropped sharply last month, bringing annual price growth down to its slowest pace since March 2021. The drop in inflation will likely keep the Federal Reserve on track to pause its aggressive run of interest rate hikes today. The Fed has hiked interest rates in consecutive meetings dating to March 2022, but it is likely to announce a temporary halt today following a two-day meeting in Washington, D.C. The annual inflation rate has dropped sharply since peaking at 9.1 percent in June after the Fed raised its baseline interest rate range by 5 percentage points since March 2021.
