Inflation eased a bit more than expected last month providing some welcome news for consumers.

But Federal Reserve officials say they want more progress and don't expect to cut interest rates much this year.

Last month saw the mildest inflation increase since... to cut interest rates much this year.

Last month saw the mildest inflation increase since 2021.

The Consumer Price Index rose two-tenths of a percent in May and was up 3.4 percent

compared to a year ago. That is excluding the more volatile costs of energy and food.

Hospital services, rents, and restaurant prices all climbed higher, but there was a broader slowdown

for other goods, including gasoline, dairy products, and airfare.

That inflation news provided some relief compared to recent reports.

Polls show that inflation has consistently remained among Americans top economic concerns.

Today, Federal Reserve Chair Jerome Powell said he wanted to see more progress in the battle against inflation too.

In fact, after projecting as many as three rate cuts for 2024,

Powell said today the Fed may only cut interest rates once

later this year.

We're looking for something that gives us confidence that inflation is moving sustainably down to 2%.

And readings like today's, you know, that's a step in the right direction, but you know, one reading isn't, it's just, it's only one reading.

You don't want to, you don't want to be too motivated by any single data point.

Economist Diane Swank of KPMG said keeping interest rates at a higher level could mean more pain for millions.

Those could get hurt from higher for longer interest rates or everything from small

mid-sized businesses that are set to reprice their loans this year.

They're not in-fixed-price loans.

And also consumers, particularly low-income consumers and younger borrowers who are seeing

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