Low price growth appears more persistent than the Federal Reserve accounted for on Friday as the central bank's preferred measure of US inflation fell for the third month in a row in May.
Core personal consumption expenditures, a price index the Fed favours over the better known consumer price index (CPI), rose at an annual rate of 1.4% in May, down from 1.5% in April.
As recently as February, the core PCE index was at 1.8%, just 0.2 percentage points below the Fed's target rate of 2%. By comparison, May's CPI rose at an annual rate of 1.9%.
The headline index, which unlike the core includes volatile energy and food prices, fell sharply to 1.4% from 1.7% in April. Analysts had expected a drop to 1.5%.
Personal income, however, rose 0.4% month on month, up from a 0.3% rise in April and beating analysts' forecasts of another 0.3% reading.