But food prices rose 0.2% after being unchanged for two consecutive months as fruits and vegetables, nonalcoholic beverages and other food products became more expensive.
While the unemployment rate rose to a seven-month high of 3.7%, that was from a 53-year low of 3.4% in April.
The so-called core CPI increased 0.4% in May, rising by the same margin for the third straight month.
Beyond May, however, overall core inflation is expected to slow, driven by a moderation in rents and resumption in price declines for used cars and trucks.
"We expect a more noticeable deceleration in core prices in the coming months," said Michael Pugliese, a senior economist with Wells Fargo in New York.
Persons:
Kathy Bostjancic, Joe Biden, I've, Biden, nonfarm, Michael Pugliese, Wells, Lucia Mutikani, Chizu Nomiyama, Paul Simao, Andrea Ricci
Organizations:
Federal Reserve, Labor Department, Fed, Nationwide, Reuters, Treasury, Reuters Graphics, Thomson
Locations:
WASHINGTON, New York, U.S, Ukraine