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| Version 3 | Version 4 |
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| US prices jump most in two years | US prices jump most in two years |
| (10 minutes later) | |
| US inflation rose at its fastest pace in two years during November, spurred by higher energy prices, according to figures from the Labor Department. | |
| Consumer prices rose by 0.8% in November, above forecasts, while core inflation, which strips out energy and food prices, rose 0.3% month-on-month. | Consumer prices rose by 0.8% in November, above forecasts, while core inflation, which strips out energy and food prices, rose 0.3% month-on-month. |
| Central banks in the UK and US have cut interest rates to boost investor confidence and prevent a wider crisis. | Central banks in the UK and US have cut interest rates to boost investor confidence and prevent a wider crisis. |
| But some analysts say further rate cuts will be difficult as inflation rises. | But some analysts say further rate cuts will be difficult as inflation rises. |
| Earlier, eurozone inflation saw its biggest rise in more than six years during November, also prompted by higher oil prices, which have reached record levels recently. | Earlier, eurozone inflation saw its biggest rise in more than six years during November, also prompted by higher oil prices, which have reached record levels recently. |
| 'Dilemma' | 'Dilemma' |
| The rise in inflation comes at a time when economic growth in the world's largest economy is slowing due to the housing slowdown and credit crisis. | The rise in inflation comes at a time when economic growth in the world's largest economy is slowing due to the housing slowdown and credit crisis. |
| There are fears that as energy costs increase, consumers will have less money to spend, which could further hamper economic growth. | There are fears that as energy costs increase, consumers will have less money to spend, which could further hamper economic growth. |
| The last time US inflation rose by such a large amount on a monthly basis came after an energy shortage in the wake of hurricane Katrina in September 2005. | The last time US inflation rose by such a large amount on a monthly basis came after an energy shortage in the wake of hurricane Katrina in September 2005. |
| As well as energy, the cost of clothing, airline tickets and medication also rose in November in the US. | As well as energy, the cost of clothing, airline tickets and medication also rose in November in the US. |
| Consumer prices increased 4.3% on a yearly basis - the most dramatic rise since June 2006. | Consumer prices increased 4.3% on a yearly basis - the most dramatic rise since June 2006. |
| While the US central bank has cut interest rates three times in recent months to boost the economy, analysts suggest that these figures will make another interest rate cut less likely. | While the US central bank has cut interest rates three times in recent months to boost the economy, analysts suggest that these figures will make another interest rate cut less likely. |
| Kim Rupert at Action Economics said: "The data highlights the huge dilemma the Fed is under between trying to quell the financial dislocations in the market, easing policy, all the while inflation rates are starting to climb higher." | Kim Rupert at Action Economics said: "The data highlights the huge dilemma the Fed is under between trying to quell the financial dislocations in the market, easing policy, all the while inflation rates are starting to climb higher." |
| "It's going to be a difficult road for the Fed." | "It's going to be a difficult road for the Fed." |
| For the year to date, inflation is at 4.2% on an annual rate - far above the 2.6% seen in 2006. | For the year to date, inflation is at 4.2% on an annual rate - far above the 2.6% seen in 2006. |
| Meanwhile separate figures from the US Federal Reserve showed industrial production rose 0.3% in November, reversing October's 0.7% drop. | Meanwhile separate figures from the US Federal Reserve showed industrial production rose 0.3% in November, reversing October's 0.7% drop. |
| This reversal stemmed from higher output at auto factories, contributing to the overall 0.4% rise in manufacturing output. | This reversal stemmed from higher output at auto factories, contributing to the overall 0.4% rise in manufacturing output. |
| Output from the mining industry, which includes oil production, rose 1.1% for the month. | Output from the mining industry, which includes oil production, rose 1.1% for the month. |