Economic Stimulus

U.S. consumer prices rose in May and a gauge of underlying price pressures showed signs of stabilizing after a long decline, a potential comfort to Federal Reserve policymakers who would like to see stronger inflation.The Labor Department said on Tuesday its Consumer Price Index edged 0.1% higher, a slightly weaker gain than analysts polled by Reuters had expected.But in a sign of stronger demand in the economy, consumer prices outside of food and energy rose 0.2% last month, just above the pace clocked in April.These so-called ``core'' consumer prices, which U.S. central bankers monitor closely because they are less volatile, were up 1.7% in the 12 months through May. That matched the increase registered in April, and supported the view that a worrisome downward trend in core inflation, which began a year ago, might be coming to an end.While May's reading for 12-month core inflation remains below the Fed's 2% inflation target, a stabilization could make the Fed more comfortable paring...

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