May inflation slows down, but interest rate hikes still on the horizon.

Inflation dropped to 4% in May, but economists warn that core inflation remains high and the Federal Reserve may continue raising interest rates to tame it. The cost of housing and used vehicles contributed to the monthly increase in May, while energy costs fell. The Federal Reserve may pause from rate hikes at its June meeting, but more months of above-expectation economic indicators increase the likelihood of more rate hikes. Some cities, including Detroit and Miami, saw stronger inflation increases in May compared to the previous two months.