CPI Up 0.7%, Core Rate Up 0.1%

Washington, DC, June 15, 2007--The consumer price index rose 0.7% in May, according to a report from the Labor Department. It was its largest increase since Hurricane Katrina and the second largest in 16 years.

The core consumer price index, which excludes food and energy, rose 0.1%. Since May 2006, core inflation has increased 2.2%.

The index’s 0.7% was in line with economist’s estimates. Economists were looking for a 0.2% increase in the core index.

Energy costs during the month increased 5.4%, gasoline prices were up 10.5%.

Food prices rose 0.3, Medical care costs rose 0.3%. Hospital charges were up 0.7%.

Transportation prices rose 2.8% on higher fuel charges. New car prices fell 0.2%.

Apparel prices fell 0.3%.