Economic Buzz: US consumer prices inch up 0.1% in May

A closely watched report released by the Labor Department on Wednesday showed a slight increase by consumer prices in the U.S. in the month of May.

The Labor Department said its consumer price index inched up by 0.1 percent in May after rising by 0.2 percent in April.

Meanwhile, the report said the annual rate of consumer price growth accelerated to 2.4 percent in May from 2.3 percent in April.

The monthly uptick by consumer prices largely reflected a continued increase by shelter costs, which rose by 0.3 percent for the second straight month.

Food prices also climbed by 0.3 percent amid higher prices for both food at home and food away from home, while energy prices slumped by 1.0 percent amid a steep drop by gasoline prices.

Excluding food and energy prices, core consumer prices still crept up by 0.1 percent in May after edging up by 0.2 percent in April.

The annual rate of core consumer price growth in May was unchanged from the previous month at 2.8 percent.

The modest monthly increase by core prices reflected the higher shelter costs as well as higher prices for medical care, motor vehicle insurance, household furnishings and operations, personal care, and education.

Meanwhile, the report said prices for airline fares, used cars and trucks, new vehicles, and apparel were among those that decreased in May.

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