Consumer prices unchanged in May [Video]

The consumer price index showed no increase in May as inflation slightly loosened its stubborn grip on the U.S. economy, the Labor Department reported Wednesday.

The CPI, a broad inflation gauge that measures a basket of goods and services costs across the U.S. economy, held flat on the month though it increased 3.3% from a year ago, according to the department’s Bureau of Labor Statistics.

Economists surveyed by Dow Jones had been looking for a 0.1% monthly gain and a 3.4% annual rate. The monthly rate rose 0.3% in April while the annual rate was 3.3%.

Excluding volatile food and energy prices, core CPI increased 0.2% on the month and 3.4% from a year ago, compared with respective estimates of 0.3% and 3.5%.

Following the report, stock market futures pushed higher while Treasury yields slid. The Dow Jones Industrial Average rose about 250 points in morning trade while the 10-year Treasury yield fell to 4.27%, …