The Globe and Mail reports in its Saturday edition that an inflation index that is closely monitored by the U.S. Federal Reserve tumbled last month to its lowest level since April, 2021, pulled down by lower gas prices and slower-rising food costs. An Associated Press dispatch to The Globe reports that at the same time, consumers barely increased their spending, boosting it just 0.1 per cent, after a solid 0.6-per-cent gain in April. The inflation index showed that prices rose 3.8 per cent in May from 12 months earlier, down sharply from a 4.4 per cent year-over-year surge in April. From April to May, prices ticked up just 0.1 per cent. Still, last month's progress in easing overall inflation was tempered by an elevated reading of "core" prices, a category that excludes volatile food and energy costs. The increase underscored the Fed's belief that it will need to keep raising interest rates to conquer high inflation. Core prices rose 4.6 per cent in May from a year earlier, down slightly from the annual increase of 4.7 per cent in April, a sign the Fed's streak of 10 rate hikes over the past 15 months has not subdued all categories of prices. AP sees inflation staying above the Fed's 2-per-cent target.