MINNEAPOLIS — Some good news on the economy.
The latest Consumer Price Index was released Tuesday morning by the U.S. Bureau of Labor Statistics and the annual inflation rate is the lowest it has been in two years.
The latest CPI numbers show prices overall went up by 0.1% in May after going up 0.4% in April.
The annual rate, which totals inflation over the last 12 months, is now sitting at 4% which is the lowest rate in two years.
University of Saint Thomas economics professor Tyler Schipper says the Federal Reserve is meeting on Tuesday and Wednesday to decide whether to raise interest rates.
Professor Schipper says these latest CPI numbers will have a big effect on the Fed’s decision and he says it’s unlikely they will raise interest rates this time around.
“I definitely don’t think the takeaway is that interest rate increases are done, but I think it maybe gives some breathing room for this meeting this week,” Schipper says.
This is good news for consumers, though Schipper says consumers likely won't see cheaper prices at the grocery store right away.
He says consumers will likely notice prices are holding steady and not going up.
"It will probably be more about establishing that ‘new normal’ where it's not shock every time we see our new grocery bill,” Schipper explains.