Federal Reserve chairman Ben Bernanke has predicted that US inflation could begin to "moderate" towards the end of the year.

Speaking to a Kansas City Federal Reserve Bank conference, he said the weakening economy together with lower oil prices and a stronger dollar could limit price rises.

Commentators have suggested the announcement is a sign that interest rates will remain on hold for the time being.

However, Mr Bernanke warned that the outlook for inflation remains "highly uncertain" and the Fed must concentrate on preserving price stability in the months ahead.

US inflation jumped to 5.6 per cent in July, the fastest rate since 1991, putting huge pressure on consumers' finances.

A new poll by CNNMoney.com reveals that 47 per cent of US citizens feel worse off now than they did at the end of the last recession in 2001.

People struggling with debt may wish to consider pay day loans to help them during the current difficulties.

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