Housing, medical care costs seen supporting underlying inflation

Washington

US consumer prices moderated in May, but sustained increases in housing and healthcare costs kept underlying inflation supported, which could allow the Federal Reserve to raise interest rates this year.

While another report on Thursday showed an increase in the number of Americans applying for unemployment benefits last week, the trend remained consistent with a healthy labour market. The data came a day after the Fed downgraded its assessment of the jobs market and gave a mixed view of the economy.