US inflation up by more than expected in May

Inflation in the United States slowed in May as the cost of fuel came down, but was till higher than economists has forecast.

Month-on-month consumer prices were up 0.2 percent compared to a 0.4 percent rise in April.

Year-on-year inflation rose 3.6 percent – the biggest gain since October 2008.

The figures show higher raw-material costs are filtering through.

The US Labor Department’s 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 clothing prices. Economists had expected the measure, which is closely watched by the Federal Reserve to provide clues on monetary policy, to rise 0.2 percent last month.

The year-over-year core inflation index rose 1.5 percent in May from 1.3 percent in April.

Copyright © 2012 euronews