Inflation unchecked in May

The consumer price index, a key measure of inflation, rose 0.6% in May as skyrocketing food and energy prices boosted inflation by the largest amount since November, according to data from the Department of Labor. Wall Street economists surveyed by Dow Jones Newswires had estimated an increase of 0.5%. Inflation has increased 4.2% since May 2007. The consumer price index rose 0.2% in April. The core consumer price index, which excludes food and energy prices, rose by a more manageable 0.2% in May. In April, it rose 0.1%.The core rate has increased 2.3% since May 2007. The cost of food rose 0.3% in May and is up 5% over the last 12 months. The continued run-up of crude oil prices pushed the cost of energy up 4.4% in May, resulting in a 17.4% increase over the past 12 months. Confidence among U.S. consumers fell in June, according to another report, as high inflation and rising unemployment took its toll on consumer sentiment. The Reuters/University of Michigan preliminary consumer sentiment index fell to 56.7 in June from 59.8 in May. Economists surveyed by Reuters had expected a reading of 59.5. The June reading is the lowest since May 1980, when an all-time low of 51.7 was recorded.