U.S. consumer prices rose slightly in May as higher energy costs were mostly offset by cheaper food, the government reported Tuesday, signaling that inflation is mild. The Labor Department said its consumer price index (CPI) rose 0.1 percent last month, only the second increase in seven months. Consumer prices fell 0.4 percent in April, the biggest decline in four years. In the past 12 months, consumer prices have increased 1.4 percent. In May, higher natural-gas and electricity costs pushed up energy prices 0.4 percent. Gasoline prices were flat. Food costs fell 0.1 percent, as grocery prices dropped by the most in nearly four years. Excluding the volatile energy and food categories, core CPI rose 0.2 percent in May and 1.7 percent in the past 12 months, in line with the Federal Reserve (Fed) inflation target of 2 percent. Mild inflation has allowed consumers to increase spending this year despite weak wage gains and higher pension taxes. It also makes it easier for the Fed to continue its extraordinary efforts to support economic growth. Fed policymakers are meeting Tuesday and Wednesday to discuss the economy and consider their next moves.
