A measure that tracks consumer prices shows the cost of living is increasing at the fastest pace in six years, reflecting a strong U.S. economy and ultra-tight labor market that’s stoking inflation.
The consumer price index increased 0.2% in May, the government said Tuesday. That was in line with Wall Street’s forecast.
The consumer price index has risen 2.8% in the past 12 months, up from 2.5% in April. That’s the highest level since early 2012.
The yearly increase in the core rate edged up to 2.2%.