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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