U.S. consumer prices rose five percent in March from a year earlier, the slowest pace in nearly two years.

The U.S. Department of Labor said on Wednesday that the U.S. consumer price index(CPI) rose five percent last month from a year earlier, slowing from six percent in February as it marks the lowest growth since May 2021.

The slowdown is attributed to a five-percent on-year drop in gasoline prices last month.

However, core inflation, which excludes volatile food and energy prices, rose five-point-six percent at an annual rate in March and zero-point-one percentage point from the previous month.

Coming less than a month before the U.S. Federal Reserve's Federal Open Market Committee meets over the key interest rate on May 3, the effect of the moderated inflation on the panel’s decision is of particular interest.