US prices rose 4% over the last year as Fed considers pause in rate hikes

Inflation year-over-year in May was down 0.9% compared with April and is the lowest rate since April 2021

The prices of goods and services in the US rose 4% over the last year, showing a cooling of prices as the Federal Reserve considers pausing interest rate hikes this week.

Inflation year-over-year in May was down 0.9% compared with April and is the lowest rate since April 2021, when prices started to climb, according to the latest consumer price index (CPI) data, which measures the prices of a basket of goods and services. The slowing of price increases can largely be attributed to energy prices, which were soaring this time last year because of Russia's invasion of Ukraine.