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U.S. inflation rises 0.4% in May; core prices inch up 0.3%

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Investing.com -

Investing.com - Consumer price inflation in the U.S. rose more than expected in May, while prices excluding food and energy costs also topped forecasts, official data showed on Tuesday.

In a report, the U.S. Department of Labor said that consumer prices rose by as a seasonally adjusted 0.4% last month, above forecasts for a 0.2% gain, after rising 0.3% in April.

Year-over-year, consumer prices rose at an annualized rate of 2.1% in May, above expectations for 2% and up from 2% in April.

Consumer prices, excluding food and energy costs, inched up by a seasonally adjusted 0.3% last month, compared to expectations for 0.2%. Core consumer prices rose 0.2% in April.

Core CPI increased at annualized rate of 2% in May, up from 1.8% in April and above expectations for 1.9%.

Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.

Following the release of the data, the U.S. dollar added to gains against the euro, with EUR/USD shedding 0.14% to trade at 1.3555, compared to 1.3570 ahead of the data.

Meanwhile, U.S. stock index futures pointed to a lower open. The Dow indicated a loss of 0.1%, the S&P 500 pointed to a decline of 0.1%, while the Nasdaq 100 signaled a fall of 0.1%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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