Headline Inflation

The consumer-price index rose 4% in May from a year earlier, well below the recent peak of 9.1% last June and down from April’s 4.9% increase.

A rate hiking pause, and even a halt, just got more likely.

Inflation dropped in May, reaching nearly half of its peak last Summer. And while the decrease could cause the Fed to pause its rate hikes in June, the rate hikes could continue this year.

With signs that inflation may be cooling it is imperative for Americans to make the right financial moves now.

Average wages grew faster in May than prices. It could be the start of some economic momentum for workers who have struggled to keep up.

Prices seemed to be coming down, but recent data signal that the end of elevated inflation remains elusive. The consumer price index (CPI) rose 4.9% in April from a year prior. This is below the generational high of 9.1% in June 2022.

The government just released the latest report on inflation. CBS News Business Analyst Jill Schlesinger helps break down the report showing a decline for the first time since June 2021.

Inflation cooled to 4.9% in April

Excluding volatile food and energy categories, core CPI rose 0.4% monthly and 5.5% from a year ago. That was in line with economists' expectations.

While inflation is slowing, it is still well above the Federal Reserve's target of 2%.

"Generally speaking, food inflation has been the most stubborn of the categories," Walmart U.S. CEO John Furner told analysts and investors on the call.

While the 2022 wedding boom is now winding down, a survey of vendors found 77% are raising their prices this year because of inflation.