Surging prices for used cars and trucks accounted about one-third of the rise in consumer inflation reported by the Labor Department on Thursday.
The recovering labor market and accelerating inflation will have no impact on monetary policy.
"As the cycle matures, these inflation pressures will subside owing to the structural forces that have kept inflation low for long."
Excluding the volatile food and energy components, the CPI increased 0.7% after soaring 0.9% in April.
Though layoffs are subsiding, initial claims remain well above the 200,000 to 250,000 range that is viewed as consistent with healthy labor market conditions.
Britni Mann, Chris Aluka Berry, Jerome Powell, Anu Gaggar, Sam Bullard
REUTERS, Labor Department, Commonwealth Financial Network, Reuters, Treasury, CPI, Fed, Thomson
Roswell , Georgia, U.S, Wells, Charlotte , North Carolina, Florida, Texas