Inflation eases slightly ahead of the Federal Reserve's interest rate decision

Inflation cooled slightly in May with consumer prices rising 3.3% on an annual basis, less than economists had forecast, according to data issued by the Department of Labor on Wednesday. The cooler pace of price hikes comes ahead of an interest-rate decision by the Federal Reserve this afternoon.

Economists expected inflation last month to come in at 3.4%, or unchanged from April's pace, according to FactSet.

The key report on consumer prices lands on the last day of a two-day policy meeting by the Federal Reserve, with most economists predicting the central bank will hold its benchmark rate steady as it awaits further data showing inflation coming down towards its 2% target.