US inflation cools in May while consumer spending rises moderately

Washington: U.S. prices were unchanged in May while consumer spending rose moderately, according to a Reuters report, in a trend that could draw the Federal Reserve closer to start cutting interest rates this year.

The flat reading in the personal consumption expenditures (PCE) price index last month followed an unrevised 0.3% gain in April, the Commerce Department's Bureau of Economic Analysis said on Friday. In the 12 months through May, the PCE price index increased 2.6% after advancing 2.7% in April.

Economists polled by Reuters had forecast the PCE price index unchanged on the month and rising 2.6% year-on-year.