In the United States, the overall inflation rate has recently edged up. According to the latest data, consumer prices rose by 2.4 percent in May compared to the same period last year, the statistics agency announced on Wednesday. On a month-on-month basis, prices increased by 0.1 percent.
The annual rate of core inflation, which excludes energy and food prices, remained at 2.8 percent in May, the same as in the previous month. This rate, often referred to as the “core inflation” is closely watched by investors, as a decline in inflation can prompt the Federal Reserve to lower interest rates further.
Energy prices, on the other hand, showed a decline of 3.5 percent in the year to May, following a 3.7 percent drop in the previous month. Food prices, however, continued to rise, increasing by 2.9 percent in the year to May, a slight uptick from the 2.8 percent rise in April.
Market participants closely monitor the US inflation rate, as a decline in inflation can lead the Federal Reserve to lower interest rates, which can have a positive impact on the stock market and the real estate sector. The trade policies of US President Donald Trump, meanwhile, are expected by many experts to lead to higher prices.