Consumer prices did not rise on the whole in May and the annual inflation rate came in slower than expected, according to data released Wednesday by the Labor Department.
The Consumer Price Index (CPI), the popular gauge of inflation, was unchanged over the past month and is up 3.3 percent annually. The CPI was expected to rise 0.1 percent in May and 3.4 percent over the past year, according to consensus estimates.
The new inflation data comes hours before the Federal Reserve’s monetary policy panel is set to announce its June interest rate decision. The Federal Open Market Committee began meeting Tuesday and is expected to hold interest rates steady at a range of 5.25 to 5 percent Wednesday.
Federal Reserve Chair Jerome Powell is set to hold a press conference at 2:30 p.m. EDT. The FOMC will also release new projections of economic growth, inflation, unemployment and the Fed’s expected interest rate path with the rate decision.
