The latest inflation and foreclosure data have hit the Street this morning. The Labor Department reported that a jump in energy prices caused consumer prices to grow at their fastest pace in 6 months in May. The consumer price index (CPI) gained 0.6% in May, outpacing the 0.5% increase expected by economists. Energy prices spiked 4.4% for the month, logging their biggest rise since November. Food prices edged just 0.3% higher. The core CPI, which excludes volatile food and energy prices, gained 0.2% to match economists' expectations. The CPI has gained 4.2% during the past year, and raced ahead at an annualized pace of 4.9% during the past 3 months.

With one eye on this jump in inflation, Barclays Capital said it expects the Federal Reserve to raise interest rates twice this year. In a note released this morning, the analysts said that the Fed will raise rates by a quarter-point in September and again in October. By the end of 2009, the group expects the fed-funds rate to arrive at 3.5% from its current perch at 2%. Previously, Barclays predicted the Fed would leave rates flat at 2% until the first quarter of 2009.

In other economic news, RealtyTrac said that foreclosure activity was up 7% in May, a year-over-year spike of 48%. One in every 483 U.S. households received a foreclosure filing during the month, representing the highest monthly foreclosure rate since January 2005, when RealtryTrac began its reports. This marks the third month in a row foreclosures have risen.

Stocks are higher out of the gate this morning, with the Dow Jones Industrial Average up nearly 70 points, the S&P 500 Index up 7 points, and the Nasdaq Composite collecting a gain of 18 points.