19 February 2005	Saturday	09 Muharram 1426

WASHINGTON, Feb 18: Inflation moved to the front burner on Friday after a report showing the sharpest increase in wholesale prices at the "core" rate in six years prompted a reassessment of the US economic outlook.

The Labour Department said its producer price index (PPI) jumped 0.3 per cent in January, while the core rate, which excludes volatile food and energy costs, soared 0.8 per cent.

The headline PPI figure was in line with forecasts, but the core rate was sharply higher than the 0.2 per cent expected by private forecasters and was the fastest pace since late 1998. In the past 12 months, the overall PPI was up 4.2 per cent and the core PPI was up 2.7 per cent, the biggest year-over-year gain in nine years.

The latest figures sparked fresh concern about inflation, which has been largely in check in recent years. Some experts said the trend, if it continues, may force the Federal Reserve to push up interest rates at a more aggressive pace. -AFP