Consumer Prices Up Less Than Expected

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WASHINGTON (June 17) — Consumer prices rose less than expected in May, fresh evidence the recession is keeping inflation in check.

The Labor Department says the consumer price index increased a seasonally adjusted 0.1 percent in May, below analysts' expectations of a 0.3 percent rise.

Excluding volatile food and energy costs, core prices also increased 0.1 percent, matching expectations.

Gasoline prices rose 9.6 percent in May, before seasonal adjustment. But they are still much lower than last year, when prices at the pump topped $4 a gallon during the summer.

Due to that decline, consumer prices fell 1.3 percent in the 12 months ending in May, the steepest drop in 59 years.

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2009-06-17 08:38:52