US consumer prices rise modest 0.1 percent

  • close
    Gwen Martinez shops for groceries using coupons in Fort Worth, Texas. Food prices declined in May for the fourth month in a row, the Labor Department reported Wednesday.
    View Caption
  • About video ads
    View Caption
of

If inflation is lurking on the horizon, it must have great camouflage.

Consumer prices rose a seasonally adjusted 0.1 percent in May, the US Labor Department reported Wednesday. The core inflation rate, which excludes energy and food, rose by the same amount.

The increases were less than what analysts had forecast and represented a further sign that economic activity has not rebounded to the point that it is pushing prices up.

Indeed, many analysts expect price pressures to moderate further in the next 12 months. One is even calling for prices to fall.

"We expect mild core consumer price deflation to take hold in 2010," wrote MFR economist Joshua Shapiro in an analysis of Wednesday's consumer price data.

Energy prices have played a huge role in driving consumer prices. For example: The consumer price index has dropped 1.3 percent over the last 12 months, the biggest decline since 1950. That was mainly due to a 27.3 percent fall in the energy index during the same period. Absent energy and food, prices actually went up 1.8 percent.

Similarly, some forecasters had expected gasoline prices to jump much more in May than the 3.1 percent that the Labor Department reported.

Share this story:

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK