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• On a monthly basis, inflation rose 0.1% from April to May. This is a drop from March to April when prices rose 0.4%.

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Why it matters: Despite the progress, inflation remains well above the 2% target and the underlying data is more concerning.

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• Core prices, which strip out volatile elements like food and energy, rose 5.3% on an annual basis and 0.4% from April to May.

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• The Federal Reserve looks more closely at core prices than the overall inflation number.

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Looking ahead: The Fed could still pause interest rate hikes at its meeting this week, but if core prices continue to remain high, it will have to resume rate increases, perhaps as soon as July.