Recovery to push up costs

Hong Kong – A forecast-busting surge in US inflation sent Asian markets tumbling yesterday, tracking a rout on Wall Street as investors fret that the Federal Reserve will be forced to hike interest rates earlier than expected to avoid prices running out of control.

Trading floors were already awash with red this week owing to growing fears the blockbuster global economic recovery and vast stimulus measures will see a splurge in spending by cashed-up shoppers that will push up costs.