WASHINGTON: US consumer prices crept higher in May, led by a jump in housing costs, after falling for two months in a row, official data released Tuesday showed.
The Labor Department reported its consumer price index rose 0.1 percent in May from April, and was up 1.4 percent over the past 12 months.
A 0.3 percent increase in the cost of housing, which includes rent, accounted for more than half of the CPI increase in May, the department said.
Energy costs rose 0.4 percent as electricity and natural gas price increases offset flat gasoline prices.
Food prices fell 0.3 percent, the sharpest drop since July 2009.
Excluding food and energy costs, which tend to be volatile month-on-month, core CPI rose 0.2 percent, double the increases in both March and April.
On a 12-month basis, core CPI was up 1.7 percent.
Inflationary pressures have been muted as the economy continues to grow at a modest pace four years after exiting the severe recession, despite massive stimulus from the Federal Reserve.
The inflation report came as the Fed opens a two-day monetary policy meeting. Analysts expect the central bank will maintain its current ultra-low interest rate and its $85 billion-a-month asset-buying program to support growth.
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