The Globe and Mail reports in its Wednesday edition that U.S. consumer prices barely rose in May and the annual increase in inflation was the smallest in more than two years, though underlying price pressures remained strong, supporting the view that the Federal Reserve would keep interest rates unchanged on Wednesday while adopting a hawkish posture. A Reuters dispatch to The Globe reports that the smaller-than-expected rise in the Consumer Price Index, reported by the Labour Department on Tuesday, reflected decreases in the costs of energy products and services, including gasoline and electricity. However, rents remained sticky and prices of used cars and trucks rose further. The report was published as Fed officials began a two-day policy meeting. The Fed, which has hiked its policy rate by 500 basis points in this tightening cycle, is expected to leave the door open to further rate increases. Economists argue the Fed should pause further rate increases while assessing the impact of the steps it has taken so far to cool demand. Overall inflation is decelerating, thanks to energy and food costs. Food commodity prices have dropped back to levels seen prior to Russia's invasion of Ukraine in February, 2022.