WASHINGTON (AP): U.S. inflation picked up slightly in May as food costs rose, though overall inflation remained mostly tame, official data released by the Labor Department revealed.
Consumer prices increased 2.4% in May compared with a year ago, according to the 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 (Fed) 2% target, which makes it less likely that the central bank will cut its key short-term interest rate. U.S. President Donald Trump has repeatedly urged the central bank to reduce borrowing costs.
