US Feds favored inflation measure cools slightly in May [Video]

The US Federal Reserve’s favored measure of inflation eased slightly in May, according to government data published Friday, as goods prices cooled.

The data provide the US central bank with further evidence that its fight against inflation is back on track after a small uptick in the annual inflation rate in the first quarter of the year.

The personal consumption expenditures (PCE) price index rose at an annual rate of 2.6 percent in May, the Commerce Department said in a statement, while monthly inflation remained unchanged.

This was in line with the median forecast of economists surveyed by Dow Jones Newswires and The Wall Street Journal.

“It is just additional news that monetary policy is working, inflation is gradually cooling,” San Francisco Fed president Mary Daly told CNBC on Friday after the data were published.

“That’s a relief for businesses and households who have been struggling with persistently high inflation,” …