Inflation rises at fastest pace in 17 years

The consumer price index, a key measure of inflation, zoomed up 1.1% in June as skyrocketing food and energy costs pulled more money out of consumers’ pockets, according to a report from the Department of Labor. The index had risen 0.6% in May. The increase marked the largest monthly jump since the index grew by 1.3% in September 2005. The CPI has risen 5% since June 2007, marking the highest year-over-year increase since the 5.3% jump between February 1990 and February 1991. The core consumer price index, which excludes food and energy prices, rose by a more manageable 0.4% in June. In May, it rose 0.2%. The core rate has increased 2.4% since June 2007. Wall Street economists surveyed by MarketWatch had expected the CPI to increase by 0.8% and for the core rate to grow by 0.2%. The cost of food rose 0.8% in June and is up 5.2% over the last 12 months. The continued run-up of crude oil prices pushed the cost of energy up 6.6% in June, resulting in a 24.7% increase since June 2007.