Inflation skyrockets in May

interns Contributor
Font Size:

U.S. core consumer inflation rose at the quickest pace in nearly three years in May and a regional manufacturing gauge contracted this month, underscoring the headwinds facing the economy.

The Labor Department said Wednesday its Consumer Price Index, excluding food and energy, increased 0.3 percent, the largest gain since July 2008, after rising 0.2 in April.

Core inflation was lifted by steep rises in motor vehicle and apparel prices and economists had expected the measure, which is closely watched by the Federal Reserve, to rise 0.2 percent last month.

Full story: Inflation keeps on rising but manufacturing gauge slumps

Tags : inflation