Inflation Rate Is Worst in 17 Years

[January 16, 2008]  WASHINGTON (AP) -- Higher costs for energy and food pushed the inflation rate up by the largest amount in 17 years in 2007 even though prices generally remained tame outside of those two areas.

Consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006, with consumers especially feeling the pain when they filled up their gas tanks or shopped for groceries. Prices for both energy and food shot up by the largest amount since 1990.

For December, the Consumer Price Index rose by 0.3 percent, down from 0.8 percent in November, as food costs were flat for the month and energy prices rose by 0.9 percent after an even bigger 5.7 percent jump in November.

[Associated Press; By MARTIN CRUTSINGER]

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