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US consumer prices unexpectedly fall; core inflation benign

Fed has 2% inflation target, tracks an inflation measure which is currently at 1.5%


US consumer prices unexpectedly fell in May as the cost of gasoline and a range other goods declined, pointing to a moderation in inflation pressures that could impact on further interest rate increases this year. The Labor Department said on Wednesday its Consumer Price Index dipped 0.1 per cent last month after rising 0.2 per cent in April. The second drop in the CPI in three months could worry Federal Reserve officials, who have previously viewed the weakness in inflation as transitory. While the US central bank is expected to raise interest rates by 25 basis points at the end ...

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First Published: Wed, June 14 2017. 21:04 IST