US STOCKS-Wall St rises as tame CPI calms inflation worry

(Updates to afternoon, changes byline)

* Core CPI, retreating oil ease inflation hike worry

* Tech shares climb back from recent losses

* Short covering lifts Lehman shares

By Jennifer Coogan

NEW YORK, June 13 (Reuters) - U.S. stocks rose on Friday, helped by a government report that showed underlying price pressures rose moderately in May, easing fears that inflation would force a near-term rise in interest rates.

Shares of Lehman Brothers Holdings Inc LEH.N jumped 13.5 percent, snapping a five-day losing streak, as some short-sellers unwound their positions ahead of the weekend.

Despite relentless gains in oil and food prices recently, investors bet the latest inflation statistics would let the Fed keep rates steady, helping the economy recover and improving the outlook for corporate profits.

The Labor Department said the Consumer Price Index rose at its fastest pace in six months in May, with the "headline" measure including runaway gasoline prices up 0.6 percent. But core CPI, which excludes volatile energy and food costs, rose 0.2 percent, matching expectations.