US consumer prices rose at twice the rate expected in July to record the highest annual rate in 17 years, pushed up by costlier energy and food, a new report has shown.
The Labor Department said the Consumer Price Index, considered a key gauge of inflation, rose 0.8% in July after a 1.1% jump in June. That was far above the 0.4% gain that economists had forecast.
Prices were up 5.6% from a year ago, the sharpest year-over-year rise since 5.7% in January 1991.
Energy prices rose 4% in July after a 6.6% June gain and were up 29.3% over the year. Food costs rose 0.9% following a 0.8% June increase, putting food costs 6% higher than a year ago.
Excluding volatile food and energy items, the core CPI rose 0.3% in each of June and July, slightly above forecasts for a 0.2% gain in July. On an annual basis, core prices rose 2.5% in July.
