Consumer prices rose just 0.1 percent in May and are up 4 percent over the past year, according to key inflation data released Tuesday morning by the Labor Department.

Inflation as measured by the consumer price index (CPI) dropped sharply last month, bringing annual price growth down to its slowest pace since March 2021.

The drop in inflation will likely keep the Federal Reserve on track to pause its aggressive run of interest rate hikes Wednesday.

The Fed has hiked interest rates in consecutive meetings dating to March 2022, but it is likely to announce a temporary halt Wednesday following a two-day meeting in Washington, D.C.

The annual inflation rate has dropped sharply since peaking at 9.1 percent in June after the Fed raised its baseline interest rate range by 5 percentage points since March 2021.

The broader U.S. economy has also slowed under the weight of rate hikes, but it has continued to add jobs at a stellar pace and maintain a low unemployment rate of 3.7 percent — just 0.2 percentage points higher than the pre-pandemic low of 3.5 percent.

Even so, the annual inflation rate is still roughly twice the Fed’s target of 2 percent, and several areas of the economy have yet to see slower price growth.

Shelter prices are up 8 percent over the past year and jumped 0.6 percent in May as a housing shortage continues to squeeze homebuyers and renters. New vehicle prices are also up 4.7 percent over the past year despite a 0.1 percent drop in May, while used vehicle prices jumped a whopping 4.4 percent last month.

Updated at 9:24 a.m.