Official figures show that US consumer prices rose a relatively modest 0.3% in December. But the Labor Department said that for all of 2007 prices shot up at the fastest rate in 17 years, largely because of soaring energy costs.
The consumer price index, the most broadly used gauge of inflation, rose 4.1% in 2007, well ahead of the 2.5% increase posted in 2006. That was the largest annual rise since a 6.1% increase in 1990.
December's CPI rise followed a sharp 0.8% jump in November and was slightly ahead of Wall Street economists' forecasts.
Core prices, which strip out volatile food and energy items, rose 0.2% in December - in line with forecasts - following a 0.3% November increase. For all of 2007, core prices were up 2.4% following a 2.6% pick-up in 2006.
The department said both food and energy costs rose during the full year of 2007 at the fastest rates since 1990. Energy costs in the 12 months were up 17.4% while food gained 4.9%.
Separate figures from the Federal Reserve showed that US industrial production was unchanged in December from November, as growth in exports helped make up for weakness in car and housing-related industries. Economists had expected a fall in production.
