The Economy

U.S. Consumer Prices Rise 0.1% in May

June 17, 2009

Core consumer prices, excluding food and energy, also increased 0.1% in May.

Consumer prices edged slightly higher in May after holding steady in April, government data showed on June 17 in a report underscoring weak demand amid the prolonged recession.

The Labor Department said its consumer price index (CPI) rose a modest 0.1% from April, according to seasonally adjusted data. The price rise was less than most analysts' expectations of a 0.3% gain.

Overall CPI was unchanged in April after slipping 0.1% in March.

On a 12-month basis, CPI fell for the third straight month in May, by 1.3%, the sharpest annual drop in consumer prices since April 1950.

Core consumer prices, excluding food and energy, also increased 0.1% in May, in line with expectations, after gaining 0.3% in April.

Core inflation was up 1.8% from May 2008, a rate within the economic comfort zone of US monetary authorities.

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