U.S. inflation picked up a bit last month as food costs rose, though overall inflation remained mostly tame, the Associated Press reports.
Consumer prices increased 2.4% in May compared with a year ago, according to a Labor Department report released Wednesday. That is up from a 2.3% yearly increase in April. Excluding the volatile food and energy categories, core prices rose 2.8% for the third straight month. Economists pay close attention to core prices because they generally provide a better sense of where inflation is headed.
The figures suggest inflation remains stubbornly above the Federal Reserve’s 2% target, which makes it less likely that the central bank will cut its key short-term interest rate.
On a monthly basis, overall prices ticked up just 0.1% from April to May, down from 0.2% previous month. Core prices also dropped to 0.1% from 0.2%.
