Sharp rises in fuel prices are eroding the spending power of consumers, heightening fears that record nominal oil costs may start to slow the global economy.

US consumer prices climbed 0.5 per cent last month and 3.2 per cent over the year faster than the 2.7 per cent increase in hourly wages. The increase in headline inflation was driven by a 6.1 per cent jump in gasoline prices, which are now up close to 20 per cent since last year.