11. The bigger-than-expected rise in consumer and core inflation put the spotlight on wages figures to be released by the government tomorrow. 12. Core inflation -- which excludes volatile energy and food components -- turned in its best showing in nearly three decades. 13. Financial markets tend to set aside food and energy price changes and focus on the figure known as core inflation. 14. However, economists were worried about a sharp rise in so-called core inflation which excludes volatile energy, food, alcohol and tobacco prices. 15. In addition, core consumer inflation is only picking up moderately despite high oil prices and the protracted weakness of the euro. 16. Thus far, even with robust growth, core inflation has remained tame. 17. And it said there was a risk that core inflation would remain high. 18. Dealers said the market then heaved a sigh of relief when headline inflation came in according to expectations, even if core inflation was higher. |