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Rising Prices for Food, Gas and Fares Drive Inflation Higher

Consumer prices rise by the largest amount in more than a year.
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/ Source: The Associated Press

Consumer prices increased in May by the largest amount in more than a year as the cost of food and gasolineshowed big gains and airline fares jumped by the largest amount in 15 years. The consumer price index rose 0.4 percent in May, the biggest one-month jump since a 0.6 percent increase in February 2013, the Labor Department reported Tuesday. Over the past 12 months, consumer prices are up 2.1 percent. While that was the biggest 12-month price change since October 2012, it still left prices rising at a pace near the Federal Reserve's 2 percent target. But analysts said the May price jump, double what had been expected, would get the attention of Fed policymakers, who were starting a two-day meeting on Tuesday.

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--The Associated Press