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June 18th, 2013 
Peter Nolan
US consumer prices crept higher in May, led by a jump in housing costs, after falling for two months in a row, official data released on Tuesday showed.
The Labor Department reported its consumer price index rose 0.1 per cent in May from April, and was up 1.4 per cent over the past 12 months.
A 0.3 per cent increase in the cost of housing, which includes rent, accounted for more than half of the CPI increase in May, the department said.
Energy costs rose 0.4 per cent as electricity and natural gas price increases offset flat petrol prices.
Food prices fell 0.3 per cent, the sharpest drop since July 2009.
Excluding food and energy costs, which tend to be volatile month-on-month, core CPI rose 0.2 per cent, double the increases in both March and April.
On a 12-month basis, core CPI was up 1.7 per cent.
Inflationary pressures have been muted as the economy continues to grow at a modest pace four years after exiting the severe recession, despite massive stimulus from the Federal Reserve.
The inflation report came as the Fed opens a two-day monetary policy meeting. Analysts expect the central bank will maintain its current ultra-low interest rate and its $US85 billion ($A89.44 billion)-a-month asset-buying program to support growth.
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