US inflation hits 5.6%

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. If you would like to comment on this story, contact: John Bakie Tel: 020 7484 9805 e-mail: ...