New figures show that US consumer prices surged 0.8% in November, the fastest pace in more than two years. The Labor Department also said that core prices, which exclude volatile food and energy costs, rose 0.3%.
The overall gain in the consumer price index (CPI) was the highest since September 2005 while the closely watched core index was the biggest gain since January.
The November jump in inflation beat Wall Street forecasts of a 0.6% increase in the headline CPI and a 0.2% rise in the core.
The annual rate of inflation was 4.3%, the highest since June 2006, and core inflation was at 2.3%, the highest since April.
