Inflation cooled in May, new data showed Wednesday, delivering a welcome piece of news just hours before the Federal Reserve is set to make its latest announcement on interest rates.

Consumer prices rose 3.3% from a year earlier, slowing from April’s 3.4% rate, according to the Bureau of Labor Statistics’ latest Consumer Price Index report released Wednesday.

On a monthly basis, prices were flat, a slower pace from April’s 0.3% gain.

U.S. inflation slowed in May, extending an easing in price increases after a hot start to the year.

The consumer-price index, a measure of goods and service costs across the economy, rose 3.3% annually last month, the Labor Department said Wednesday. Core prices that exclude volatile food and energy items climbed 3.4% from a year earlier.

Stock futures jumped after the report, while Treasury yields fell.

Wednesday’s inflation report, which came hours before a Federal Reserve meeting is set to conclude, was better than many investors’ expectations.

Inflation rose at 3.3% year-over-year last month — slightly down from the 3.4% that was forecast by analysts.

The consumer price index ticked down slightly from the 3.4% headline rate from April. Core inflation, which excludes volatile food and energy prices, also rose 0.2% — slightly lower than expected.

Dow futures soared before the opening bell on Wall Street on Wednesday as investors hope the latest numbers bolster the case for the Fed to begin cutting interest rates later this year.