U.S. Inflation Posts Biggest Increase in 8 Months

US inflation saw its biggest monthly rise for eight months in May, official data showed today, due to steady increases in food and energy costs.

However, inflation remained broadly stable when these volatile components were stripped out, the Labour Department said.

The 0.7% gain in overall prices was higher than Wall Street forecasts and the largest jump since September.

But core inflation, which is more closely watched by policymakers at the Federal Reserve, increased by only 0.1%, lower than forecasts and down from the 0.2% in April.

It always amazes me that they strip out the "volatile" food and energy components. The American people do not have to worry about inflation unless they eat or drive. Paris Hilton and Nicole Richie will smile at this report.