Inflation soars to 17-year high

U.S. inflation rose to a 17-year-high annual rate last month, according to the Department of Labor. Over the past 12 months, the annual inflation rate has risen 5.6%, marking the largest year-over-year increase since January 1991. Economists had expected that inflation would increase 5.1%, according to Reuters. The consumer price index, a key reading of inflation, increased 0.8% last month, following a 1.1% increase in June. The core consumer price index, which doesn't include volatile energy prices, rose 0.3% for the second consecutive month. Energy prices rose 4% last month, which followed increases of 6.6% and 4.4% in June and May, respectively. Energy costs have risen 29.8% since July 2007. Crude-oil prices hit a record high of $147.27 July 11 and have retreated over the past month to $113.35 per barrel in Thursday afternoon trading. Food and beverage costs increased 0.9% last month, following a 0.7% increase in June. Over the past 12 months, the cost of food and beverages has risen 5.8%. Meanwhile, the Labor Department also reported that 450,000 workers filed for unemployment benefits last week, a decrease of 10,000 from the previous week.