US Annual Inflation Rate Slows as Shelter Costs Remain Elevated

The U.S. annual inflation rate slowed in May, defying economists’ expectations and providing Federal Reserve policymakers hope that progress on inflation has been revived. Last month, the consumer price index eased to 3.3 percent, down from 3.4 percent in April. This was slightly below the market forecast of 3.4 percent but represented the 38th consecutive month of inflation above 3 percent. Inflation was zero percent monthly and below the consensus estimate of 0.1 percent. Core CPI, which strips the volatile energy and food components, slowed to 3.4 percent in May, down from 3.6 percent in the previous month. This was also below the market estimate of 3.5 percent....