The US inflation rate rose by 0.6% in May — the highest monthly increase since last November.

The core inflation rate, however, which excludes volatile food and energy prices, only rose 0.2%, easing fears that rising commodity prices would feed into more widespread inflation

But can the government’s inflation data be trusted? John Brown in The Daily Reckoning doesn’t think so…

If all the musicians in Salzburg had become investment managers with investments in India, I don’t see them on the streets of Bombay either!

In the energy market Thursday, crude for July delivery moved higher after the one-day pullback, closing at $132.19/barrel, up $1.38. July reformulated gasoline gained back 6 cents, to $3.396/gallon.

In the energy market Wednesday, crude for June backed off, falling under $125 to close at $124.22/barrel, down $1.58. June reformulated gasoline lost 2 cents, to $3.18/gallon.