Inflation in the US hit a 17-year high in July as the high cost of fuel hit consumers' wallets.
The official rate of inflation for the year to July 2008 reached 5.6%, but analysts say the worst may now be over.
Fuel and energy costs were largely to blame for the high rate of inflation having risen 30% over the past twelve months.
However, analysts believe inflation will begin to fall due to the recent drop in oil prices, which peaked at $147 a barrel in July.
In the short-term, US consumers have seen their inflation-adjusted weekly earnings fall by 3.1%, putting a squeeze on spending.
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