US inflation accelerated at the fastest rate in 26 years during June, pushed higher by surging energy prices, official figures have shown.
Consumer prices rose by 1.1% in June, the Labor Department said, more than many analysts had expected.
Energy Crude oil prices cross $138 a barrel for first time ...
US new home sales at 16-year-low ...
US economic outlook 'worsening' ... prices were 6.6% higher.
Federal Reserve boss Ben Bernanke said on Tuesday that the "upside risks" to inflation had intensified recently.
High inflation will make it harder for the Fed to cut rates and boost growth.
On Tuesday, Mr Bernanke also warned that there were still "downside risks" to growth in the world's largest economy.
Alan Ruskin, an economist at RBS Greenwich, said that the June inflation figure "really puts the Fed in a hole".
(BBC)
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