Inflation cooled to 4% in May, the lowest reading since March 2021

Consumer price growth cooled again in May to the lowest level since March 2021, the Bureau of Labor Statistics reported Tuesday.

On an annual basis, price growth fell to 4%. Price growth climbed just 0.1% month-over-month.

The reading was slightly better than economists' forecast of 4.1% — and down significantly from 4.9% rate in April. On a monthly basis, forecast was for a 0.1% increase, lower than April's 0.4% reading.

The data shows that inflation — and the high prices that result from it — is finally starting to meaningfully come down.

The decline has been helped by gasoline prices, which have steadily fallen after sharp increases last year that were largely the result of Russia's invasion of Ukraine.

Nearly one year after inflation peaked at a 40-year high of more than 9%, analysts are now debating just how fast inflation will continue to fall.