The Commerce Department on Friday reported that a key U.S. inflation gauge was up in May, with prices rising 2.3% compared to a year ago, according to the Associated Press. The report is the latest sign that prices remain elevated even as Americans pull back on spending.
Excluding volatile food and energy categories, so-called “core” prices rose 2.7% from one year earlier, an increase from 2.5% in April. Both figures are just above the Federal Reserve’s 2% target.
Overall spending fell 0.1%, however, as Americans cut back on spending for the first time since January.
