Efforts to Slow Inflation Continue

Inflation eased in May, which could increase the probability of at least one interest-rate cut by the Federal Reserve later this year.

In a statement, the U.S. Dept. of Labor said prices rose 3.3% in the 12 months ending in May, and that prices were flat month over month for the first time in two years.

The index for shelter rose in May, up 0.4% for the fourth consecutive month while the index for food increased 0.1%. The energy index fell 2% for the month, led by a 3.6% decrease in the gasoline index.

Reporting by The Wall Street Journal said the inflation slowdown could keep alive the idea that the Fed might cut interest rates at its September meeting. The report said officials are “looking to regain confidence that price growth is slowing after several disappointing figures at the beginning of the year.”