U.S. Inflation Slows Slightly in May, Misses Expectations and Pressures Dollar

Inflation in the United States, as measured by the Consumer Price Index (CPI), rose to 2.4% year-over-year in May, up slightly from 2.3% in April, according to data released Wednesday by the U.S. Bureau of Labor Statistics (BLS). However, the figure came in just below market expectations of 2.5%.

Core CPI, which excludes the more volatile categories of food and energy, remained steady at 2.8% annually, matching the increase seen in April. On a monthly basis, both the headline CPI and the core CPI rose by 0.1%, missing analyst forecasts of 0.2% and 0.3%, respectively.

In immediate market reaction, the U.S. Dollar came under notable selling pressure. As of the time of writing, the U.S. Dollar Index was down 0.37% on the day, trading at 98.68.