Consumer inflation remained cool as a cucumber in May, increasing only 0.1% on both the headline and core measures. The consensus had been looking for +0.2% and +0.3% respectively. We received the expected weakness in gasoline (-2.6%) and energy prices (-1.0%). But we also got an unexpectedly favorable cooling in services (+0.2%) and housing (+0.3%) inflation too, keeping the inflation 'boogeyman' at bay for at least another month. The Federal Reserve will take some solace from the improving consumer inflation trends, but not enough, in our view, to pull the trigger on another rate cut until September at the earliest. The decline in energy prices and other categories may yet prove fleeting. Tariffs remain a threat to higher inflation in the months ahead—even with the tariff truce between the U.S. and China and the benign readings on inflation in recent months.