Through the first three months of this year, overall inflation has risen at a 4.3 percent annual rate, far above the 3.4 percent price increase for all of 2005. Energy prices are up 21.8 percent at an annual rate through March, compared with a 17.1 percent rise for all of 2005.

"There continue to be some factors out there other than basic supply and demand for crude (oil) and for gasoline that are affecting the price," Matthews said. "Whether I can tell you that it's going to remain stable or keep going up, to some degree that's anyone's guess."

The price of light sweet crude for May delivery closed at $72.17 a barrel on the New York Mercantile Exchange Wednesday, an increase of 82 cents from the previous day. Oil futures contracts through July 2009 are now trading above $70 a barrel.

"Nothing in today's data indicates that continued pressure on gasoline prices will be abated," Matthews said. "More than likely we'll continue to see pressure on gasoline prices."

Stock prices edged lower on Wednesday, one day after investors had pushed the Dow Jones industrial average up 194.99 points. The biggest gain in a year coincided with the release of Fed minutes from the March meeting that indicated the central bank soon could halt its long string of rate increases.

"Could" being the operative word, according to Matthews.

"To say that the Fed is absolutely finished tightening may be a little bit of hopefulness rather than absolute certainty at this point in time," Matthews said.

Still, Bonnie B. Newman, a relationship manager with Wells Capital Management in Salt Lake City, said Wells remains bullish about the market in 2006, which she said is supported by strong corporate earnings, a global economic recovery led by emerging markets and, at least so far, relatively low inflation.

"Since the recession lows of 2002, the S&P 500 is up over 65 percent, and that's even in the face of rising short-term interest rates," Newman said. "The equity markets continue to rise and continue to post good gains."

The Dow rose a modest 10 points Wednesday to close at 11,278.77.

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E-mail: jnii@desnews.com