<p>FILE - In this May 8, 2015 file photo, gas station attendant Carlos Macar pumps gas in Andover, Mass. Gasoline is close to breaking below a key psychological barrier as drivers enjoy some of the cheapest pump prices since the recession. The nationwide average price of a gallon of regular Saturday, Dec. 12, 2015 was $2.02, down 58 cents from this time last year, according to auto club AAA. Experts say it could drop below $2 in the coming days. (AP Photo/Elise Amendola, File)</p>
U.S. consumer prices rose 0.2 percent in May, with surging gasoline costs driving much of the increase.
The Labor Department says the consumer price index climbed 2.8 percent in May from a year earlier, putting inflation on its fastest annual pace since February 2012. But core prices -- which exclude the volatile food and energy categories -- have risen a milder 2.2 percent over the past 12 months.
Inflation remains relatively tame, although it has picked up this year. Gasoline prices climbed 1.7 percent in May and surged 21.8 percent from a year ago.
But the slower growth in core prices likely means that the Federal Reserve will raise interest rates only gradually. Fed officials are expected to raise rates on Wednesday for the second time this year.
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