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

While the Commerce Department released a closely watched report on Friday showing consumer prices in the U.S. crept up in line with expectations in the month of May, the report also showed core consumer prices rose by slightly more than expected.

The report said the personal consumption expenditures (PCE) price index inched up by 0.1 percent in May, matching the uptick seen in April as well as economist estimates.

The annual rate of growth by the PCE price index accelerated to 2.3 percent in May from 2.2 percent in April, which also matched expectations.

Meanwhile, the core PCE price index, which excludes food and energy prices, rose by 0.2 percent in May after inching up by 0.1 percent in April.

The annual rate of growth by the core PCE price index also accelerated to 2.7 percent in May from an upwardly revised 2.6 percent in April.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

The Commerce Department said personal income fell by 0.4 percent in May after climbing by a downwardly revised 0.7 percent in April.

Disposable personal income, or personal income less personal current taxes, fell by 0.6 percent in May after growing by 0.8 percent in April.

The report also said personal spending edged down by 0.1 percent in May after rising by an upwardly revised 0.2 percent in April.

Excluding price changes, personal spending fell by 0.3 percent in May after inching up by 0.1 percent in April.

With income falling by more than spending, personal saving as a percentage of disposable personal income slumped to 4.5 percent in May from 4.9 percent in April.

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