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US sees return of inflation

US CONSUMER prices rose 0.4 per cent in November on the previous month, taking the annual inflation rate to 1.8 per cent.

This was the first year-on-year gain recorded in the index since February and was in line with analysts’ expectations.

The surge last month was fuelled by a 4.1 per cent surge in energy costs as gasoline, electricity, fuel oil, and natural gas prices all rose.

Analysts expect inflation to continue rising to as high as three per cent, before gradually dropping back over the course of next year.