US May consumer price index up 0.4%; minor inflation pressure

US Department of Labor announced that the May consumer price index was up 0.4% vs the rise of 0.3 in April. Deducting food and energy core index, it gained 0.1%, lower than the market expectation of 0.2%. The figure showed a minor local inflation pressure.

The rise can be attributable to the energy and housing price hike, with the prices of energy, electric power, gasoline and food up 3.1%, 1.3%, 6% and 0.3% respectively. Prices of clothing and tobacco went down by 0.9% and 1.3%.

The sustained growth in consumer price index indicated that the Fed has a further rate-cut room to spur the weak economy.

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