CPI Rises Twice as Much as Anticipated

Washington, DC, Aug. 14, 2008--U.S. consumer prices jumped to a 17-year high in July, according to the Labor Department.

The consumer price index climbed 0.8 percent, twice as much as anticipated. The cost of living was up 5.6 percent in the year ended in July, the biggest surge since January 1991. Core prices, which exclude food and energy, also rose more than projected.

Still, commodity costs have fallen since mid-July, indicating the rise in total consumer prices may slow.

Consumer prices were forecast to rise 0.4 percent, according to economists.

Core prices increased 0.3 percent for a second month, exceeding the 0.2 percent median forecast of economists.

The core rate increased 2.5 percent from July 2007, the most since January, after a 2.4 percent year-over-year increase the prior month.