May inflation data has revealed that price increases are slowing down but are still remaining above normal levels.

The latest numbers show that there was a 0.1% price increase last month, which equates to a 4% annual rate, according to the consumer price index report.

Investor’s Business Daily reported that despite the inflation rate’s overall decrease, “core CPI inflation, excluding prices for energy and groceries, matched forecasts, remaining way too hot for the Federal Reserve.”

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Why is this important? Economists expected prices to increase by 0.2% from April to May, but with the drop from April’s 4.9% and being a little below the projected 4.1% gain, the data shows inflation is going in the right direction, according to CNN.

The chief global economist for the Economic Outlook Group, Bernard Baumohl, said, according to USA Today, “The embers of inflation keep fading.”

“The most encouraging thing is the year-over-year growth rates are going to come down pretty sharply,” chief economist at Moody’s Analytics, Mark Zandi said, according to CNBC. “The headline number is going to feel good, it’s going to be encouraging, showing inflation is moving in the right direction. More fundamentally, I think inflation is moving in the right direction.”

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Despite the downward trend of inflation, prices are still above the normal levels, according to The Washington Post.

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What has been said? “The bigger question for inflation is: Where is it going? Where does it settle out?” Peter Boockvar, chief investment officer at the Bleakley Financial Group, said. “Are we just going to go back to this 1-to-2 percent inflation trend that we got so used to? Or is there something so structural that after the spike, after the comedown; are we going to settle at 3?”

The Wall Street Journal reported that the “Federal Reserve officials made progress in cooling price pressures but could have more work to do.”

Wells Fargo senior economist Sarah House said, “Directional progress should not be confused with mission accomplished.”

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