US inflation at 17 year high

The BBC reports US inflation is at a 17 year high.

US inflation accelerated at its fastest pace in 17 years in June, official figures have shown, driven higher by surging energy prices

Consumer prices were 5% higher than a year ago and rose 1.1% on a monthly basis, the Labor Department said.

Federal Reserve boss Ben Bernanke has warned that the threat of rising inflation has intensified recently.

With inflation here tracking similar rates of increase, it's hard to see how our own Reserve Bank can lower its OCR on July 24th. They would appear to be doing well just to keep it where it is.