Consumer Prices Jump, Trade Gap Narrows

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http://story.news.yahoo.com/news?tmpl=story&ncid=578&e=6&u=/nm/20040414/bs_nm/economy_dc


Consumer Prices Jump, Trade Gap Narrows

By Tim Ahmann

WASHINGTON (Reuters) - U.S. consumer prices logged an unexpectedly sharp rise in March as the cost of energy, clothing and lodging jumped, according to a government report on Wednesday suggesting long-dormant inflation may be rearing its head.

A separate report showed the U.S. trade gap narrowed in February as the weak dollar and stronger economic growth propelled both exports and imports to record levels.

The Labor Department (news - web sites)'s consumer price index, the most widely used gauge of U.S. inflation, rose 0.5 percent in March after a 0.3 percent increase in February.

The closely watched core CPI, which strips out often-volatile food and energy costs, surged 0.4 percent, the biggest increase in nearly 2-1/2 years.