U.S. inflation picked up a bit last month as food costs rose, though overall inflation remained mostly tame.
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. President Donald Trump has repeatedly urged the central bank to reduce borrowing costs.
There were scattered signs that Trump’s tariffs may have contributed to some price increases, but the cost of some imported goods, such as clothing, fell in May from the previous month and many services, such as airline fares and hotel rooms, also dropped in price.
On a monthly basis, overall prices ticked up just 0.1% from April to May, down from 0.2% the previous month.
Grocery prices rose 0.3% from April to May, and are up 2.2% in the past year. Fruits and vegetables, breakfast cereals and frozen foods all rose in price. Egg costs fell 2.7%, their second straight drop though they are still more than 40% more expensive than a year ago.
