The consumer price index increased 0.1% for the month of May, lower than economists' predictions, with the annual rate reaching 2.4%.

The latest Producer Price Index, a closely watched measurement of wholesale inflation, rose 0.1% in May, lifting the annual rate to 2.6%, according to Bureau of Labor Statistics data released Thursday.

Consumers are starting to feel more optimistic, based on the latest University of Michigan sentiment data. Part of that rise may be because they are less worried about inflation. Yahoo Finance Markets Reporter Josh Schafer takes a closer look at the data.

Major equity indices, which had been hovering near all-time highs, pulled back as geopolitical risks surged back to the forefront.

The European Central Bank's inflation target of 2% is in reach, ECB President Christine Lagarde was quoted as saying in an interview published on Saturday. In the interview with China's Xinhua news agency earlier this week which was released on the ECB website,

A sustained surge in oil prices is likely to complicate the U.S. fight against inflation. A $10-a-barrel increase would boost year-over-year growth in the consumer-price index by 0.5 percentage points,

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UK households had been expecting inflation to slow over the coming year, according to a Bank of England survey that was conducted before the sudden jump in consumer prices reported last month.

U.S. inflation picked up a bit last month as higher prices for groceries and some imported goods were largely offset by cheaper gas, travel services, and rents.