US inflation drops to 4% in May

Lowest level in over two years

US inflation fell to just 4% in May, its lowest level since March 2021.

The headline figure from the Bureau of Labor Statistics came in below economists' expectations of 4.1% and down from 4.9% in April. Meanwhile, core CPI fell to 5.3%, slightly above expectations of 5.2% but down from 5.5% the month prior. Richard Flynn, managing director of Charles Schwab UK, explained that the "stickiness" in inflation was now "confined to a smaller number of categories compared to earlier in the year", with housing, financial services and used cars contributing to the majority of the rise in recent months. The Federal Reserve is set to decide on its interest rate tom...