Fed's Rate Decision and Inflation: What to Expect for Stocks.

Economists predict a smaller increase in prices for May compared to April, with inflation about half of what it was a year ago. The rise in service prices, which accounts for 84% of inflation, is due to consumer behavior still affected by the pandemic, while firms have had to raise wages to hire more workers. Housing expenses and food and beverage prices are also contributing to inflation. Falling gas prices and the Federal Reserve's rate hikes have helped cool inflation.