Inflation Cools, Heats Wall Street

But gas prices, at record highs, still worrisome
By J. Kelman,  Newser User
Posted May 15, 2007 1:48 PM CDT
A motorist, right, fuels his car at a gas station in Braintree, Mass., Monday, May 14, 2007. Gas prices rose two cents over the last week in Massachusetts for an average of $2.95 for a gallon of self...   (Associated Press)
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(Newser) – The core consumer price index stayed steady last month, rising just 0.2% and cooling worries about inflation. The overall CPI, which responds to fluctuating food and energy costs, climbed 0.4%, still well within the comfort zone. That's good news for the Fed, which held interest rates steady last week in hopes of targeting inflation.

The better-than-expected figures led a rally to a record high on Wall Street, MarketWatch reports, even after Home Depot and Wal-Mart released poor earnings data. But gas—which rose yesterday to a record of $3.09 a gallon and was up 4.7% in April alone—looks to be the spoiler.