AFP WASHINGTON (AFP-Jiji) — Sharp increases in prices for gasoline, fuel oil, shelter and medical care helped send a key measure of U.S. inflation to a six-year high in May, according to new data released Tuesday.
The fuel-driven jump in prices comes a day before the Federal Reserve is overwhelmingly expected to raise the benchmark lending rate for the second time this year to keep a lid on inflation.
Rising prices also showed signs of eating into hourly worker wages, which were flat in May when adjusted for inflation, compared to the same month last year.
The Consumer Price Index, which tracks costs in household goods and services, rose 2.8 percent year-over-year in May, the highest since February 2012, the Labor Department reported.
Compared to April, however, CPI rose only 0.2 percent, undershooting analyst expectations.