Inflation surges to 5.6%

Consumers feel the sting as prices jump again to highest point since 1991 - monthly increase twice what was expected.

By Aaron Smith, CNNMoney.com staff writer
Last Updated: August 14, 2008: 1:26 PM EDT

NEW YORK (CNNMoney.com) -- The annual inflation rate surged to 5.6% in July - the highest point in 17 years, the government announced Thursday.

The previous month's reading on annual inflation was 5%.

The July increase matched the 5.6% level in January 1991, when the Persian Gulf War was raging.