Inflation cools for ninth straight month but remains above targeted 2% rate

The rate of inflation continues to slow but still remains high, according the federal government's Consumer Price Index report released Wednesday, which shows the costs of goods and services in the U.S. rose by 5% compared to 12 months earlier.

Last month's number compares to the 6% annualized rate for April and is the ninth consecutive month the rate has dropped, the Bureau of Labor Statistics report shows.

Federal Reserve Chairman Jerome Powell has said 2% inflation is ideal.

The report slightly exceed expectations. They were expecting an annual increase of 5.2% and a monthly gain of 0.2%, according to Refinitiv, an American-British provider of financial market and infrastructure data. 

The report also shows that grocery prices fell on a monthly basis for for the first time since September 2020. The food-at-home index dropped 0.3% for the month, helped by lower prices in eggs, which fell nearly 11%, according to CNN.