US inflation surges 5.6%

US consumer prices surged to an annual rate of 5.6% in July. rising at their highest rate since 1991. This monthly rise was double what the market was expecting. This price data was only one of a set of signals that the Federal Reserve will have trouble untangling. Real wages fell because prices rose faster and hours worked fell, but new claims for unemployment benefits actually fell last week. And, these July changes came before the US dollar started rising in August, and the recent substantial retreat in oil prices, both of which will help keep a dampener on inflationary pressures. �