June 11 (UPI) — The Bureau of Labor Statistics reported Wednesday that U.S. inflation measured by the Consumer Price Index increased by a lower than expected 0.1% in May.

That’s an annual CPI rate of 2.4% before seasonal adjustment. Higher shelter costs of 0.3% in May drove the overall increase, according to the BLS.

“The index for shelter rose 0.3% in May and was the primary factor in the all items monthly increase,” the BLS said in a statement. “The food index increased 0.3% as both of its major components, the index for food at home and the index for food away from home also rose 0.3% in May. In contrast, the energy index declined 1.0% in May as the gasoline index fell over the month.”

With food and energy excluded, core annual CPI inflation was 2.8%.

Economists surveyed by Dow Jones expected a 0.3% May CPI increase and a 2.9% annual CPI increase.

“The all items index rose 2.4% for the 12 months ending May, after rising 2.3% over the 12 months ending April,” the BLS statement said. “The all items less food and energy index rose 2.8% over the last 12 months. The energy index decreased 3.5% for the 12 months ending May. The food index increased 2.9% over the last year.”

Three of the six major grocery store food groups’ prices went up in May, while the other three declined. Prices for cereals and bakery products were up 1.1% in May, while fruits and vegetables rose 0.3%.

Meat, poultry, fish and egg prices fell 0.4% in May, according to the BLS. Egg prices dropped by 2.7%.

Energy prices measured by CPI dropped 1% in May after climbing 0,7% in April.

Gasoline prices fell by 2.6% in May, according to the BLS. CPI energy prices dropped by 3.5% compared with May 2024. Gasoline prices were down by 12% compared with May 2024.

Electricity prices rose by 4.5% year-to-year.