Sharp rise in US inflation

Consumer prices rose 0.6% in May, the largest monthly increase since November 2007, with petrol costs jumping 5.7%. The Federal Reserve has slashed interest rates to just 2% in recent months to stave off a recession, but high levels of inflation may force a rethink. On an annualised basis, US inflation hit 4.2% last month, though core inflation, which excludes food and fuel costs, is at 2.3%. Inflation in the UK is lower than in the US, at 3% in April, but is expected to rise later this year, which could prompt the Bank of England to increase interest rates. If you would like to comment...