Official figures show that US consumer prices rose last month, but a drop in energy costs limited the overall increase.
The US consumer price index rose by 0.2% in May, the Labor Department said, down from April's 0.4% and the smallest rise for six months. Food costs rose 0.4%, but energy costs fell 1%. That was the first drop in energy costs in nearly a year.
So-called 'core' prices, which exclude volatile food and energy, rose 0.3%, the most in nearly three years.
The annual inflation rate in May was 3.6%, the highest level since October 2008. Excluding the volatile food and energy categories, which account for about 20% of the index, so-called 'core' prices rose only 1.5% in the same period.
Some inflation can be healthy for an economy because it encourages people to spend and invest rather than sitting on their cash. But higher food and petrol prices have slowed growth this year, as consumers have had to spend more on these items, leaving less money for spending on other goods and services.
There are signs that those prices are easing, and if they fall further, that could lift consumer spending and boost growth in the second half of the year.
