Federal Reserve chairman Ben Bernanke has warned that inflation in the US is too high.

He was speaking after telling a Senate committee that there is a real danger of inflation rising even further, putting more pressure on people's finances.

According to the Labor Department, producer inflation was up 1.8 percent last month because of the rising cost of gasoline and food.

"The possibility of higher energy prices, tighter credit conditions and a still-deeper contraction in housing markets all represent significant downside risks to the outlook for growth," he stated.

Experts believe it is likely that interest rates will remain pegged at the current rate of two per cent over the next few months.

Last month's inflation jump was the biggest rise since in seven months and followed a 1.4 percent hike in May.

Consumers struggling with rising food and fuel costs may need to consider a debt management plan.

-----------------------------------------------------------------------