Special Report

US consumers feel heat of rising prices

WASHINGTON: Rising prices stretched Americans' wallets further in July, according to a government survey Thursday which showed that consumer price inflation surged by a more-than-expected 0.8 percent.On an annual basis, the government's Consumer Price Index (CPI) -- a key barometer of price pressures -- leapt 5.6 percent to July, marking the biggest annualized spike since January 1991.Core prices, which strip out volatile energy and food costs, rose 0.3 percent in July from the prior month, the Labor Department said in a monthly survey.The 0.8 percent jump in the CPI during July was double the expectation of most economists, while the rise in the core rate was a notch above most forecasts.And while consumer prices soared on an annual basis by the largest margin in 17 years, the core reading -- which rose 2.5 percent in the year to July -- marked its most significant gain since February 2007.