Economic Report: U.S. Inflation Hits 26-Year High - 07/17/08

Economic Report:

The U.S. has set a new record. Inflation hit a 26-year high in June with consumer prices jumping by 1.1 percent. The Labor Department revealed those numbers as Federal Reserve Chairman Ben Bernanke testified for a second day on Wednesday in front of Congress. Accelerating inflation puts the Reserve in a complicated position by making it difficult to cut interest rates that would normally be used to boost the floundering economy.