US inflation rate continues to fall

Prices for eggs, used cars and furniture in the US dropped in May, helping to slash inflation to less than half of its peak a year ago.

Inflation, the rate at which prices rise, was 4% over the 12 months to the end of May, the Labor Department said. That was down from 4.9% in April.

The update comes as the US central bank meets to debate whether it should raise interest rates again.

Officials have already raised borrowing costs sharply to rein in prices.

Analysts expect the bank to keep interest rates unchanged this month, but it could signal a willingness to keep raising rates in the future.