US inflation soars to 5%

The key measure of US annual inflation surged to its highest level since 1991 in June, figures out Wednesday reveal.

The Department of Labor said that the CPI-U measure of inflation, which calculates the rate of price growth for all urban consumers, rose by 1.1% between May and June, which takes the annual measure to 5%.

The estimate was well above market expectations of a 0.7% surge, which would have taken the annual rate to 4.5%.

The Fed tends to pay more attention to the core measure of in