The Federal Reserve’s preferred inflation measure cooled in May, mildly encouraging news that could give policymakers confidence that price increases are still moderating — though progress remains slow.Although inflation has been coming down notably overall in recent months, Fed officials have been closely tracking the “core” measure of the Personal Consumption Expenditures index that cuts out grocery and gas costs, which they think offers a better signal of how price increases might shape up in the months and years to come. That measure has been stuck at an elevated level and has been coming down only haltingly.It moderated — but not drastically — in May. Prices climbed 4.6 percent from the previous year, excluding food and fuel. That compared with a forecast for a 4.7 percent increase, which would have matched the previous month.Core inflation has hovered between 4.6 and 4.7 percent since December 2022, below its 5.4 percent peak last y …
