The cost of living is rising at the fastest rate since the recession of the early 1990s, handing a de facto pay cut to the American worker.

Consumer prices were 5.6 percent higher in July than a year ago, all but assuring that the Fed will keep interest rates on hold.

Consumer prices rose at twice the rate expected in July to post the fastest rate of year-over-year growth in 17.5 years, pushed up by costlier energy and food.

Japan’s corporate goods prices rose at their fastest rate in more than 27 years, pushed up by surging oil and commodities prices, the Bank of Japan said.

The trade deficit for June, retail sales for July and the Consumer Price Index for July are among the highlights of the week’s economic reports.

Concerns about an economic slowdown pushed oil down for a second day, prompting a 2.5 percent jump in the Dow, amid new evidence of rising prices.

Concerns about an economic slowdown pushed oil down for a second day, prompting a 2.5 percent jump in the Dow, amid new evidence of rising prices.

Sharp rises in fuel costs drove consumer prices up much faster than expected, straining an already shaky economy. The “core” rate — excluding food and energy — also outpaced forecasts.

Sharp rises in fuel costs drove consumer prices up much faster than expected, straining an already shaky economy. The “core” rate — excluding food and energy — also outpaced forecasts.

Sharp rises in fuel costs drove consumer prices up much faster than expected, straining an already shaky economy. The “core” rate — excluding food and energy — also outpaced forecasts.