Hopes for an interest rate cut by the Federal Reserve before the end of the year saw some improvement Wednesday with the release of the latest Consumer Price Index (CPI) data.
According to the U.S. Labor Department report, the CPI was unchanged in May despite a projected slight increase, as inflation remaining stubborn for U.S. fiscal policymakers.
The CPI, which measures the change in the price of everyday items for U.S. consumers, was expected to rise 0.1%. The annual CPI came in at 3.3%, down slightly from a projected 3.4%.
Core inflation, which excludes food and energy prices, rose 0.2% on the month and 3.4% for the year. Dow Jones estimates called for respective figures of 0.3% and 3.5%.
The Fed’s fight with inflation continues after interest rates were raised to their highest point in 23 years. The central bank had hoped to start cutting those rates this year but may be forced to wait longer than anticipated.
“I think a September rate cut is still on the table but generally speaking the economy has been remarkably resilient,” Wendy Edelberg of the Brookings Institute told CNBC’s “Squawk Box”.
The Fed holds its monthly meeting this week and is expected to weigh in on the latest numbers this afternoon.
