Forexpros – Core consumer price inflation in the U.S. rose broadly in line with market expectations in May, while prices including food and energy costs fell at the sharpest rate in almost three years, official data showed on Thursday.
In a report, the Bureau of Labor Statistics said that core consumer prices rose by a seasonally adjusted 0.2% in May, in line with expectations, after rising by 0.2% in April.
Year-over-year, core consumer prices rose at an annualized rate of 2.3% in May, unchanged from April and above expectations for 2.2%.
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.
Consumer prices, including food and energy costs, fell 0.3% last month, the first decline in two years, compared to expectations for a 0.2% decline. Consumer prices were flat in April.
Consumer prices increased at annualized rate of 1.7% last month, slowing sharply from 2.3%. Analysts expected consumer prices to rise at an annualized rate of 1.8%.
Following the release of the data, the U.S. dollar remained modestly lower against the euro, with EUR/USD easing up 0.1% to trade at 1.2569.
Meanwhile, U.S. stock index futures remained lower after the release of the data. The Dow Jones Industrial Average futures pointed to a drop of 0.1%, S&P 500 futures indicated a loss of 0.1%, while the Nasdaq 100 futures signaled a 0.15% decline.
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