US government data released on Thursday showed that price increases that had held steady in the past 12 months ended in May, while the rise in consumer spending slowed sharply.

This, according to some, may comfort consumers as a sign that the Federal Reserve's aggressive interest rate plans are beginning to have an effect in limiting the fastest uptick in inflation seen in more than four decades.

Compared to May 2021, the Personal Consumption Expenditures (PCE) price index rose 6.3%, the same pace as in the prior month, despite it rising 0.6% compared to April, according to the Commerce Department.

This monthly increase, which was faster than in the preceding month, was still below economist projections.

The PCE price index is the US Federal Reserve's preferred tool to gauge inflation, because it reflects the actual spending made by consumers, including their shifts to lower-cost items.

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With the exclusion of volatile food and energy prices, the PCE rose 0.3% in the preceding month, the same as in April. 

The IMF's Managing Director Kristalina Georgieva said that the IMF is aware that the path to avoiding a recession in the US is "narrowing."

"We are conscious that there is a narrowing path to avoiding a recession in the US. We also have to recognize the uncertainty of the current situation," Georgieva said. 

Read more: US Treasury Secretary admits failure to predict inflation risk

The IMF expects the US economy to slow down as Covid-19 takes its toll on the economy, in addition to the war in Ukraine which has resulted in global inflation and resource shortages.

Georgieva said the IMF is confident that the US Federal Reserve will succeed in curbing inflation.