WASHINGTON (AP) – U.S. consumer prices rose a moderate amount in May, driven up by rising energy costs and the biggest increase in shelter costs in more than nine years.
Consumer prices increased 0.2 percent last month following a 0.4 percent April increase, the Commerce Department reported Thursday. Energy prices rose for a third straight month, but food costs fell.
Core inflation, which excludes volatile food and energy, was also up 0.2 percent in May.
The Federal Reserve indicated Wednesday that it is still concerned about low inflation. The central bank left its key policy rate unchanged in a range of 0.25 percent to 0.5 percent. After moving the rate up by a quarter-point in December, the first rate hike in nearly a decade, the central bank has delayed any further increases because of concerns about tepid economic growth and inflation that is stuck at ultra-low levels.
Over the past 12 months, overall inflation has risen a modest 1 percent, reflecting in part the fact that energy prices are down 10.1 percent over that time period. Core inflation is up 2.2 percent over the past 12 months.