Wall St is worried about inflation: New data may calm those fears

A key gauge of US inflation suggests that fears of rising prices weighing on the economic recovery may be overblown.

United States stock markets have been roiled in recent weeks as investors fret that rising inflation could drag on the nation’s economic recovery. But a key gauge of US inflation suggests those fears may be overblown – at least for now. US consumer prices – excluding food and energy – rose a mere 0.1 percent in February from the previous month, the US Bureau of Labor Statistics said on Wednesday. The measurement, known as “core CPI” (for consumer price index) eliminates food and energy prices, which tend to be highly volatile month to month.