Consumer prices rose in 2007 at the fastest pace in 17 years ... Average weekly earnings (adjusted) ... DROPPED by 0.9 percent

Gas, food spur inflation jump in 2007 | By MARTIN CRUTSINGER, AP Economics Writer Wed Jan 16, 5:50 PM ET

WASHINGTON - Consumer prices rose in 2007 at the fastest pace in 17 years as motorists paid a lot more for gasoline and grocery shoppers paid higher food bills. However, falling prices for clothing and new cars offset some of those gains.

The Labor Department reported that consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006. Both energy and food prices jumped by the largest amount since 1990.
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Workers' wages failed to keep up with the higher inflation. Average weekly earnings, after adjusting for inflation, dropped by 0.9 percent in 2007, the fourth decline in the past five years. The lagging wage gains are cited as a chief reason many workers have growing anxiety about their economic futures. ...