Washington — Falling US petrol prices drove both inflation and retail sales down in May, according to government data released on Wednesday. The figures came out just hours before the Federal Reserve concludes its two-day monetary policy meeting where it is widely expected to increase interest rates, despite weak inflation and tepid wage growth. The consumer price index (CPI), which tracks changes in the cost of household goods and services, declined 0.1% compared with April — largely driven by 6.4% drop in the cost of fuel at the pump, according the to the labour department. Meanwhile, retail sales dropped a surprising 0.3% in May, also due in part to falling petrol prices, as Americans also bought fewer appliances and electronics, the commerce department reported. Analysts had projected CPI to be flat, and retail sales to rise 0.1%. Excluding the food and fuel categories, which can see big swings from month to month, CPI rose 0.1%. The 12-month overall price measure fell below the...
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