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U.S. core CPI rises more-than-expected in May

Published 06/15/2011, 08:42 AM
EUR/USD
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Investing.com – Core consumer price inflation in the U.S. rose slightly more-than-expected in May, official data showed on Wednesday.

In a report, the Bureau of Labor Statistics said that consumer prices, less food and energy rose by 0.3% in May, after rising by 0.2% in April.

Analysts had expected core CPI to rise by 0.2% in May.

Core consumer prices rose at an annualized rate of 1.5% after accelerating at a rate of 1.3% in April and above expectations for a 1.4% gain.

Consumer prices including food and energy costs rose more-than-expected in May, increasing by a seasonally adjusted 0.2%, after rising by 0.4% in April.

Analysts had expected consumer price inflation to ease up by 0.1% in May.

Consumer prices increased at annualized rate of 3.6% in May, exceeding forecasts for a 3.4% increase. 

Following the release of the data, the U.S. dollar was up against the euro, with EUR/USD tumbling 1.18% to trade at 1.4270.

Meanwhile, the outlook for U.S. equity markets was broadly lower. The Dow Jones Industrial Average futures pointed to a loss of 0.9%, S&P 500 futures indicated a decline of 0.88%, while the Nasdaq 100 futures slumped 0.92%.

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