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U.S. consumer inflation hits 17-year high

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U.S. inflation soared to a 17-year-high annual rate in July, a government report showed, led by gains in food, energy, airline fares and apparel.

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Consumer prices jumped 5.6% on a year-over-year basis, the highest rate since January 1991. The core CPI grew a more modest 2.5% compared to July 2007, though that’s still well above the U.S. Federal Reserves’s long-term goal of 1.5% to 2%. Over the past three months, core inflation rose at a 3.5% annual rate.

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