Inflation slowed for second straight month, CPI shows

By the numbers: The latest CPI figures show overall prices did not rise at all — compared to the 0.3% increase in April, while the core measure rose by the same amount.

• Over the last 12 months ending in May, the index rose 3.3%, compared to 3.4% in April. The core index rose 3.4% over the last 12 months, down from 3.6% the prior month.

Details: Lower gasoline prices helped drag down the overall index. The energy index fell 2% in May, while gasoline fell 3.6%.

• Grocery store prices rose 0.1% after being unchanged in April, while food away from home — a category that tracks dining out — rose 0.4, a tick more than the prior month.
• Shelter prices continued to rise at a quick pace, up 0.4% for the fourth consecutive month.
• Among the categories that saw prices outright decline in May: airline fares, new cars and apparel.

What to watch: The Federal Reserve pushed out the timeline for potential rate cuts this year after signs that inflation appeared harder to stamp out than initially thought and the overall economy has remained strong.

• The Fed will release its latest interest rate decision Wednesday afternoon.
• While policymakers are all but certain to keep rates on hold, there will be plenty of attention on the Fed's updated projections about inflation, the labor market and the rate path that are set to be released alongside the decision.