U.S. May core CPI rises 0.3% on higher shelter costs

U.S. core inflation increased 0.3% for the third month in a row in May, putting pressure on the Federal Reserve to keep raising interest rates. The consumer price index increased 0.4% in May, the Labor Department said Wednesday, led by higher energy and shelter costs. The increase matched expectations. Core prices - which exclude volatile food and energy costs - increased 0.3%, ahead of the 0.2% gain expected by economists surveyed by MarketWatch. The core rate was boosted by a 0.6% gain in owners' equivalent rent, which accounts for nearly one-fourth of the CPI. In the past year, the CPI has risen 4.2%. The core CPI has risen 2.4%, the fastest year-over-year growth since February 2005.