U.S. May Consumer Prices Rise 0.4%; Core Rises 0.3%

[swag]

http://quote.bloomberg.com/apps/news?pid=10000006&sid=av_0cn9ED1pM&refer=home

June 14 (Bloomberg) -- Rising gasoline costs and rents propelled U.S. consumer prices higher last month, increasing speculation that Federal Reserve policy makers will raise interest rates later this month.

Prices paid by Americans rose 0.4 percent after April's 0.6 percent increase, the Labor Department said in Washington. Excluding food and fuel, so-called core prices rose a larger-than- forecast 0.3 percent for a third straight month. Core inflation over the last three months was the highest since 1995.

Fed policy makers are leading a worldwide chorus of central bankers warning of inflation risks. Investors are selling stocks on speculation higher borrowing costs will slow the global economy too much.

``Core inflation will continue to drift up a bit through the end of the year,'' Robert Mellman, an economist at JPMorgan Chase Bank in New York, said before the report. ``The Fed, as well as central bankers around the world, seem intent on keeping inflation in check and it's pretty clear the Fed will raise rates at the June meeting.''


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[fasttense]

1. These faked numbers are no surprise

with a 12% real inflation rate it is hard to keep hiding the price increases.