U.S. inflation last year hit 17-year high
Last Updated: Wednesday, January 16, 2008 | 9:29 AM ET
CBC News
Inflation in the United States hit a 17-year high last year, pushed up by rising costs for energy and food, the U.S. government said Wednesday.
Overall consumer prices rose 4.1 per cent last year, a jump from 2006's 2.5 per cent.
Factoring out the more volatile influences, such as energy, core inflation for last year was up by 2.4 per cent, a decrease of 0.2 of a percentage point from 2006.
The year concluded with a 0.3 per cent rise in consumer prices for December. The monthly figure was down from November's 0.8 per cent increase. Food prices were flat in December but energy prices were ahead by 0.9 per cent.
The U.S. central bank, the Federal Reserve, has been keeping tabs on whether higher food and energy prices are spreading to other goods, which could put upward pressure on the core inflation rate.
Moderate core inflation could give the Fed the room to cut interest rates at a time when the U.S. economy is moving into a slowdown.
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