The year-over-year growth in May marked the smallest annual increase since the period ending March 2021. "The May consumer price index doesn't alter the Fed's plan to pause this week and the recent drop in oil prices support our forecast for the central bank to remain on hold through the remainder of this year before starting to cut interest rates in early 2024," said Ryan Sweet, Chief U.S. On Wednesday, the Labor Department is scheduled to release a separate report on producer price inflation in the month of May.