Ahead Of The Bell: Consumer Price Index

WASHINGTON (AP) — Consumer prices are expected to rise slightly in May due to a rapid increase in the cost of gasoline.

Wall Street economists expect the Consumer Price Index rose 0.3 percent in May, according to a survey by Thomson Reuters. The CPI was flat in April and dipped slightly in March.

The Labor Department is scheduled to release the May report Wednesday at 8:30 a.m. EDT.

The recession has kept inflation in check as the unemployment rate has reached a 25-year high and factories are operating at record-low levels. Workers concerned about their jobs are less likely to push for higher pay, while low consumer demand has made it difficult for companies to raise prices.

Excluding volatile food and energy, the core CPI is forecast to rise only 0.1 percent.

In the past 12 months, prices have actually fallen as the recession has deepened. Economists expect the CPI to drop 0.9 percent in the year ending in May, with core inflation forecast to rise 1.8 percent.