Consumers got big relief from inflation in America in May, break possible due to cost of debt

United States Inflation Data: On Monday, the retail inflation rate announced for the month of May in India came down to 4.25 percent. Now there is news of relief from America also on the front of inflation. In America, inflation has increased by 4 percent in the month of May, which is less than in April 2023. In April, the inflation rate had increased at the rate of 4.9 percent. With the rate of inflation slowing down, the Federal Reserve of America would be heaving a sigh of relief the most. It is being speculated that in the US too, the Fed Reserve may put brakes on making loans costlier.

There is a meeting of the Federal Reserve on June 14 i.e. tomorrow, Wednesday. Now it is expected that the Fed Reserve may put a brake on raising interest rates after the inflation rate is lower than expected. Since March 2022, the Fed Reserve has been continuously increasing interest rates. The Fed Reserve has been increasing interest rates to reduce demand in the country and make debt expensive, so that inflation can be controlled, and the labor market can be hurt. In the last 10 meetings, the Fed Reserve has made the loan costlier, whose interest rates have crossed 5 percent.

Investors in America are also of the opinion that this time the Fed Reserve will not make any change in the interest rates. Due to the decrease in the prices of food and fuel, the core prices increased by 5.3 percent in May compared to the previous year, which is less than in April 2023. The slowing down of the US economy has affected the job market there, due to which inflation has come down. One thing is certain from this that the purpose for which the Fed Reserve had made the loan expensive, it has been successful in achieving that purpose.

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