Photo: Shoppers at a supermarket checkout in San Francisco. Photographer: David Paul Morris/Bloomberg Shoppers at a supermarket checkout in San Francisco. Photographer: David Paul Morris/Bloomberg

U.S. inflation slowed in May, supporting the case for Federal Reserve officials to pause their run of interest rate hikes this week.

Both the consumer price index (CPI) and the core CPI—which excludes food and energy—decelerated on an annual basis, highlighting inflation’s descent since peaking last year. At 4 percent, year-over-year inflation is now at its lowest level since March 2021, according to data out Tuesday from the Bureau of Labor Statistics (BLS).

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