May saw a slight moderation in consumer inflation, with the consumer price index (CPI) remaining unchanged on a month-over-month basis and inching down to 3.3% on a year-over-year basis. This is still above the Fed's target of 2.0%, as it was the 12th consecutive month it has wandered between 3.0% and 3.7%. In other words, it has gone nowhere in 12 months.
"Core" inflation, which excludes volatile food and energy prices, showed more promise, cooling to 3.5% on a year-over-year basis, and unlike the headline, does appear to be making progress towards that target. But you wouldn't know that from the Fed's last meeting
