US inflation cools down 0.1% as odds of a June Fed rate cut diminish

In May, US inflation increased only by 0.1%, below the predicted 0.2%, leading to a low chance of a rate cut in June. Core inflation figures also showed a rise of 0.1%, with annual core inflation at 2.8%, lower than what analysts anticipated.

The decrease in energy prices, particularly a 2.6% drop in gasoline, was a critical factor in moderating inflation. While food prices rose by 0.3%, real wages adjusted for inflation increased by 0.3%, granting workers more spending power amidst ongoing concerns over inflation.