Just another headline rewrite on behalf of the NY Times - Strong Economy Eliminates Threat of Deflation (Actually "Consumer Prices Rise, Heightening Concern on Inflation")

After falling sharply yesterday, by late morning all three major stock market indexes were higher on the day.

A rise in inflation measures unsettles bond traders, but economists said firmer prices are good news.

"You have to look at this as opportunistic pricing by companies," said Robert di Climente, chief United States economist at Smith Barney.

Concern about deflation, or falling prices, has been a worry at the Fed for months. And Mr. Resler said it has inhibited businesses as well.

"The threat of deflation not only influenced the Fed, but also businesses, who were afraid of not producing more goods than they could sell and were reluctant to hire more workers than they needed," he said.

"That threat has been eliminated."