US prices didn't rise last month for the first time since November

Prices in the US remained unchanged in May, breaking a streak of monthly increases that began in November. The Personal Consumption Expenditures (PCE) price index, a key measure of inflation, showed no increase from April and slowed to 2.6% for the 12 months ending in May, down from 2.7% the previous month. The slower inflation can be attributed to falling gas prices and cheaper goods, while food prices saw a modest increase of 0.1%. Excluding energy and food, the core PCE price index increased by 0.1% for the month, reaching a three-year low of 2.6%. The report aligns with expectations. In the same report, it was revealed that consumer spending was up by 0.2% for the month, with real spending growing by 0.3% when adjusted for inflation. The increase in personal and disposable income contributed to the boost in spending, and the personal savings rate rose to 3.9%, its highest level since January. The data comes amidst speculations about the strength of the US economy. Economists predict that slowing inflation and a softening economic growth outlook may lead to a rate cut by the Federal Reserve in the near future. The probability of a rate cut in September increased to 61.1%, according to the CME FedWatch tool.