US Consumer Prices Unexpectedly Drop in May Due to Falling Gasoline Prices

According to PANews, US consumer prices unexpectedly fell in May due to a drop in gasoline prices. Despite a robust job market, inflation may still be too high for the Federal Reserve to begin cutting interest rates before September. Data from the US Bureau of Labor Statistics showed that the overall Consumer Price Index (CPI) for May remained steady, following a 0.3% rise in April. Since the publication of robust data in February and March, the CPI has been on a downward trend. As major retailers significantly reduce the prices of goods ranging from food to diapers, price pressures may continue to ease. Analyst Chris Anstey's review of the US May CPI report suggests that this is actually the first month with a good inflation report. He stated that we need several more such positive reports to truly allow the Federal Reserve to cut interest rates in September.