Energy costs drive up US inflation

US consumer price inflation rose at its fastest rate since November 2007 on the back of surging oil and energy prices whilst consumer confidence plummeted to its lowest level in nearly 30 year.

The US Labor Department said prices increased by 0.6% in May, which was higher than analysts expected.

Core prices, which exclude food and energy, were up 0.2%. Energy prices surged 4.4% during the month, the biggest rise since November. That was driven by a 5.7% spike in gasoline prices during the month, also the biggest rise since November.

Consumer prices rose 4.2% compared with this time last year, the biggest rise since January.

Guardian