U.S. May consumer prices up 0.6 percent

The 0.6 percent rise in May prices was more than the 0.5 percent gain Wall Street analysts polled by Reuters were expecting after a 0.2 percent increase in April.

So-called core prices, which exclude volatile food and energy, were up 0.2 percent as expected, the Labor Department report showed.

Energy prices surged 4.4 percent during the month, the biggest rise since November, after holding steady in April. That was driven by a 5.7 percent spike in gasoline prices during the month, also the biggest rise since November.

In further evidence of inflationary pressures, year-over-year consumer prices rose a larger-than-expected 4.2 percent, the biggest rise since January. But core prices advanced 2.3 percent as expected. Analysts were expecting a 3.9 percent gain in overall prices.

Economists said they were not surprised that energy costs leapt higher, but said the report could cause some angst at the Federal Reserve as it suggests inflationary pressures are building.

The gains come as world oil prices continue to hover near record highs. Key oil futures contracts in New York and London were trading around $135 a barrel in Friday trading.