Don't Be Fooled, Inflation Is Already Here

[Letsbereal]

Consumer prices in U.S. climb 0.2% in May
15 June 2011, by Jeffry Bartash - Washington (MarketWatch)
http://www.marketwatch.com/story/consumer-prices-in-us-climb-02-in-may-2011-06-15

Excerpt:

U.S. consumer prices rose a seasonally adjusted 0.2% in May as the cost of food, clothing, autos and housing all climbed sharply, according to the latest government data.

The consumer price index advanced despite the first decline in energy prices in 11 months.

So-called core prices, which strip out volatile food and energy costs, increased 0.3%, the largest one-month gain since July 2008, the Labor Department said Wednesday.

----

Consumer prices have risen 3.6% over the past year, the biggest 12-month increase since October 2008.

[Letsbereal]

Nestle sees 10% raw material price inflation
18 June 2011, by John Revill - Manila (MarketWatch)
http://www.marketwatch.com/story/nestle-sees-10-raw-material-price-inflation-2011-06-18

Swiss food company Nestle SA expects no further rises in its raw material price exposure, which it expects to remain at around 8% to 10% in 2011, Chief Executive Paul Bulcke said.

The maker of Nescafe soluble coffee and Maggi seasoning cubes spends around CHF30 billion ($35.37 billion) per year on ingredients and packaging.

The company said in February it expected its bill to rise by CHF2.5 billion to CHF3 billion this year. "That still stands," Bulcke told a press conference here.

Nestle is trying to offset the price increases by increasing efficiency of its products, reducing packaging costs and focusing on its popularly positioned products--cheaper versions of its food and drinks, which are sold in smaller portion sizes.

The surging value of the Swiss franc will continue to weigh on the company, Bulcke said.

Nestle's first quarter 2011 sales of CHF20.3 billion were reduced 9.8% by currency exchange, while the Swiss franc has continued to rise.

The Swiss, Nestle's reporting currency, hit record levels against the euro this week as people flocked to the currency's safe haven status amid fears over a Greek bond default.

Bulcke would not say how much the franc would affect the company for the remainder of 2011, but said the company had a natural hedge with 458 factories around the world, and worked in local currencies.

The company would not be hedging its currency exposure when it consolidates its earnings in francs, Bulcke said.

"The Swiss franc is at record strength, and there are many emerging markets which are strengthening," he said.

If the company consolidated in dollars, the reported sales figures would be higher, Bulcke said, but a lower number did not mean Nestle was doing badly.

"We don't like to see it. We are growing very handsomely in many markets, but we have less francs at the end of the day. That's ego stuff, but where is all that growth in Swiss francs?"

[TahoeBlue]

Nestle is Switzerlands Coca-Cola:

Nestle sees 10% raw material price inflation
18 June 2011, by John Revill - Manila (MarketWatch)
http://www.marketwatch.com/story/nestle-sees-10-raw-material-price-inflation-2011-06-18
...
The surging value of the Swiss franc will continue to weigh on the company, Bulcke said.
...
"We don't like to see it. We are growing very handsomely in many markets, but we have less francs at the end of the day. That's ego stuff, but where is all that growth in Swiss francs?"

The Nestle Bilderberg connection:

http://bilderberg2011.com/2011/part-of-bilderberg-2011-conference-also-meets-in-geneva-switzerland/
...
The meeting in St. Moritz is a ruse, a farce, a faint. No doubt information of interest will be discussed in St. Moritz, but other more sinister meetings of steering committee members will occur in Geneva, Switzerland, during the time the Bilderbergs are in Switzerland.

In many ways this makes sense. Our focus will be on St. Moritz, there will be Bilderbergs there, but some additionally meetings will occur in Geneva, because they believe we do not know about this. They want us to focus our attention on St. Moritz, where we will protest and attempt to determine what is occurring inside the meeting, all the while they are making plans in the relative safety of Geneva.

Various sources have indicated that something is occurring in Geneva. Most importantly, an individual who works for a security company has leaked that the company he works for has been hired for an event in Geneva from 8 June to 12 June. The company is being secretive about the event, which he claims is odd. He does not know the precise location or who security is for, all he knows is that the event is being called Operation Romance
...
Update (06/08/2011): one of our readers gave us additional info on the possible location in Geneva:

“It’s possible that Nestle or Novartis would provide a private location if they don’t rent a hotel.? Nestle is usually hosting the rive-reine conference in Vevey, wich is like a mini-bilderberg of Switzerland. that would be a possibility”

http://bilderberg2011.com/2011/bilderberg-2011-conference-location-and-date-revealed-from-june-9-12-in-st-moritz-switzerland/
...
Update: lots of discussion going on about the exact location of the 2011 Bilderberg meeting. UK newspaper The Guardian has been know to always report objectively about the Bilderberg Group and they recently said Bilderberg is gathering this year at the Hotel Suvretta House in St. Moritz.

While there is still doubt on which Hotel they will pick in St. Moritz, far more interesting news reached us which could make the St. Moritz events rather insignificant. Different sources told us there will be a second simultaneous meeting in Geneva. Will they use the conference in St. Moritz as a media shield, to prevent too many unwanted visitors at the real meeting in Geneva? All very interesting developments as we are getting closer to the conference date…

http://www.suvrettahouse.ch/en/
http://www.suvrettahouse.ch/en/webcam/

http://en.wikipedia.org/wiki/Peter_Brabeck-Letmathe

Mr. Brabeck-Letmathe is on the Board of Directors of Credit Suisse Group, L'Oréal, and ExxonMobil. He is also a member of ERT (European Round Table of Industrialists) and a member of the Foundation Board of the World Economic Forum. His earnings in 2006 were approximately 14 million Swiss francs (8.4 million Euro).

...
His career within the Group included a span of almost 10 years in Chile (1970–1980), first as national Sales Manager and later as Director of Marketing. In 1981, he was appointed Managing Director of Nestlé Ecuador and in 1983, President and Managing Director of Nestlé
Venezuela. In October 1987, he was transferred to Nestlé's international headquarters in Vevey.
...
On 5 June 1997, at the Ordinary General Meeting of Shareholders of Nestlé S.A., Mr. Peter Brabeck-Letmathe was elected Member of the Board of Directors. On the same day, the Board appointed him Chief Executive Officer of Nestlé S.A. On April 6, 2001, the Board of Directors of Nestlé S.A. elected him as Vice-Chairman of the Board, and, in April 2005, Chairman of the Board.

In 2008, Brabeck stepped down as CEO

http://www.reuters.com/article/2011/05/22/us-nestle-idUSTRE74L13420110522

ZURICH | Sun May 22, 2011 7:40am EDT

ZURICH (Reuters) - Nestle's (NESN.VX) chairman hopes to stay on the board until 2017 and reiterated that the food producer has until 2014 to decide on its stake in French cosmetics company L'Oreal (OREP.PA), a paper reported on Sunday.

Peter Brabeck said in an interview with SonntagsZeitung he aimed to stay on the Nestle board until the statutory limit, which was 72 years old. "I could therefore stay on the board until 2017, which is my wish," he said ...

[Letsbereal]

Average household food bill nears $200 as food inflation tipped to surge as high as 5pc
27 June 2011, by Samantha Townsend (The Daily Telegraph)
http://www.heraldsun.com.au/money/money-matters/average-household-food-bill-nears-200-as-food-inflation-tipped-to-surge-as-high-as-5pc/story-fn312ws8-1226082437430

[Letsbereal]

Akzo Nobel warns rising costs will hit profit
27 June 2011, by Simon Kennedy - London (MarketWatch)
http://www.marketwatch.com/story/akzo-nobel-warns-rising-costs-will-hit-profit-2011-06-27

Excerpt:

Dutch paints and chemicals producer Akzo Nobel Group said earnings before interest, taxes, depreciation and amortization will be around 550 million euros ($777 million).

Raw material prices had jumped around 20% year-on-year.

[Letsbereal]

Shop price inflation gathers pace in June
6 July 2011, London (Reuters)
http://uk.reuters.com/article/2011/07/06/uk-britain-prices-brc-idUKTRE76476H20110706

Shop price inflation jumped last month to its highest rate since October 2008, led by a sharp rise in food prices, a survey showed on Wednesday.

The British Retail Consortium said higher petrol and commodity prices lifted shop price inflation to 2.9% in June from 2.3% in May.

Food inflation rose to 5.7% from 4.9% -- the biggest rise since May 2009 -- while non-food inflation rose to 1.3% from 0.8%.

"Overall shop price inflation is being driven by surging world commodity prices, the effect of the weak pound on import costs and higher VAT -- all beyond retailers' control," said BRC director general Stephen Robertson.

The BRC predicted that there would be further upward price pressure, especially on the cost of non-chilled goods, due to higher grain prices, and also second-round effects from wage rises in commodity-exporting countries.

The lobby group added that food price inflation was running well below broader consumer price inflation, and 39% of all grocery items purchased were on promotion.

[Letsbereal]

FAO food price index up in June on sugar prices
7 July 2011, Milan (Reuters)
http://uk.reuters.com/article/2011/07/07/uk-food-fao-index-idUKTRE7661HC20110707

The U.N. Food and Agriculture Organisation Thursday announced a surprise rise in its global food price index, fuelled by higher sugar prices, and raised its grain output forecast to reflect the latest U.S. data.

[Letsbereal]

Food prices unlikely to fall: General Mills CEO
13 July 2011, by Paul Ziobro - New York (MarketWatch)
http://www.marketwatch.com/story/food-prices-unlikely-to-fall-general-mills-ceo-2011-07-13

Excerpt:

Higher food prices are here to stay, General Mills Inc.'s Chief Executive Ken Powell said Wednesday, adding that it was unlikely that food prices will slip into a deflationary cycle as they did last year.

"It would be highly unlikely that we'll see price declines," Powell said during a meeting with investors.

"The long-term trends are inflationary, not deflationary.

You're going to see pricing in a significant way."

[Letsbereal]

Associated British Foods warns of price pressures
14 July 2011, by Simon Zekaria - London (MarketWatch)
http://www.marketwatch.com/story/associated-british-foods-warns-of-price-pressures-2011-07-14

Associated British Foods PLC Thursday warned the pressures on food costs faced by manufacturers and retailers mean U.K. shoppers, already facing a squeeze on incomes, will continue to pay more for staple grocery items at the tills.

[Letsbereal]

Energy keeps euro zone inflation above ECB target
14 July 2011, Brussels (Reuters)
http://uk.reuters.com/article/2011/07/14/uk-eurozone-inflation-idUKTRE76D16G20110714

Rising fuel and electricity prices were the main drivers behind the annual rise in euro zone consumer prices in June, data showed on Thursday, as the EU statistics office confirmed its earlier inflation estimate.

Eurostat said consumer prices in the 17 countries using the euro were flat month-on-month in June and up 2.7% year-on-year, the same as in May.

[Letsbereal]

China government adviser sees no hard landing
14 July 2011, by Owen Fletcher - Beijing (MarketWatch)
http://www.marketwatch.com/story/china-government-adviser-sees-no-hard-landing-2011-07-14

Excerpt:

Inflation in the world's second-largest economy is likely to have peaked in June or will do so in July, with price pressures expected to gradually ease in the remainder of this year, Yu Bin, Director General of the Department of Macroeconomic Research of the Development Research Center of the State Council, said at a press conference.

Yu said that China's economic growth this year will likely be between 9.0% and 9.5%, with inflation around 5% for the whole year.

China's second-quarter gross domestic product rose 9.5% from a year earlier, compared with 9.7% in the previous quarter.

Inflation reached 6.4% last month, the highest in three years.

[Letsbereal]

Analysis - Global food inflation to return after brief respite
14 July 2011, by Julie Ingwersen - Chicago (Reuters)
http://uk.reuters.com/article/2011/07/14/uk-usa-food-agflation-idUKTRE76D0J520110714

Red-hot food inflation that has vexed policy makers around the world seemed to take a breather last month, when corn and wheat prices tumbled on reports that crop shortages were easing.

The sell-off was also driven by global economic worries that prompted funds to exit grains in droves.

But prices are climbing again, and have already made up half of June's losses.

[Letsbereal]

Vietnam sees inflation at 22% in July
23 July 2011, Hanoi (AFP)
http://www.google.com/hostednews/afp/article/ALeqM5jitgtHfyAf7ykjoPlflJYILolF6Q?docId=CNG.9f59001faaecb84c5db67bbb098e4e02.5a1

Excerpt:

Vietnam's inflation rate, already one of the world's highest, accelerated for the 11th straight month in July, according to official estimates released Saturday.

The consumer price index is expected to rise 22% this month compared with July last year, the General Statistics Office (GSO) said, as food costs soar.

Inflation was reported at 20.82% year-on-year in June.

Vietnam, long focused on economic growth, has shifted its efforts towards stabilising an economy facing a slew of challenges including rising inflation, a struggling currency and trade deficit.

CPI began to accelerate in September 2010 and prices have continued to rise, although inflation is still below a recent peak of 28.3% seen in August 2008, and far from the triple-digit figures seen in the 1980s.

Food prices, which climbed 23.8% year-on-year in the first seven months of the year, jumped 32.6% this month compared to July 2010, according to the GSO figures.

----

Vietnam's economic growth eased slightly to 5.6% year-on-year in the first half of 2011, a little below the country's year end target of around 6%.

[Letsbereal]

Singapore Inflation Quickens to Fastest Pace Since January on Food Prices
25 July 2011, by Shamim Adam and Sarina Yoo (Bloomberg)
http://www.bloomberg.com/news/2011-07-25/singapore-inflation-quickens-to-fastest-pace-since-january-on-food-prices.html

Excerpt:

Singapore’s inflation accelerated to the fastest pace since January as food and housing costs increased, sustaining pressure on the central bank to allow the currency to appreciate and contain price gains.

The consumer price index rose 5.2% last month from a year earlier, the Department of Statistics said in a statement today. That matched the median estimate of 13 economists surveyed by Bloomberg News. Inflation was 4.5% in May, according to previously reported data.

The Monetary Authority of Singapore raised its inflation forecast for 2011 last week, citing higher home rental and transportation costs. The island’s currency has appreciated to unprecedented levels since the central bank said in April it would allow further appreciation to tame price gains, the third monetary tightening in a year.

----

Singapore’s consumer prices may climb 4% to 5% this year, higher than a previous forecast of 3% to 4%, central bank Managing Director Ravi Menon said July 21. Singapore, which uses the exchange rate as its main tool to manage inflation, said in April it will re-center the currency’s trading band higher.

[Nailer]

our CONgress persons do not have to worry about inflation as only thier net worth is inflating daily.



http://governmentgonewild.org/thelist

80 names on the list.

shocking examples of how they can work finances for themselves and make  millions , yet they fail to balance a budget or play it smart with tax payers money.

McCaul, Michael (R-Texas)  2009 net worth  $137,611,043

Spratt, John M Jr (D-SC)    $22,443,507

[Letsbereal]

South Korea Inflation Accelerates to 4-Month High
1 August 2011, by By Shinhye Kang and Eunkyung Seo (Bloomberg)
http://www.bloomberg.com/news/2011-07-31/south-korea-inflation-accelerates-to-a-four-month-high-exceeding-target.html

Excerpt:

South Korea’s inflation accelerated to a four-month high in July and exports grew at a quicker pace, putting pressure on the central bank to raise interest rates.

Consumer prices rose 4.7 percent from a year earlier, Statistics Korea said today, exceeding the median estimate of a 4.4 percent rise in a Bloomberg News survey of seven economists. Exports expanded 27.3 percent last month, rebounding from a 20- month low and beating forecasts for a 17.1 percent gain, a separate report showed.

The Bank of Korea’s board will meet on Aug. 11 to discuss whether to raise borrowing costs after reports last month showed that economic growth slowed in the second quarter on weaker exports. Policy makers across Asia are struggling to contain rising consumer prices as food costs soar.

“Korea’s economy is proving surprisingly robust,” said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong. “This should provide the Bank of Korea with enough confidence to hike interest rates further.”

The won rose 0.5 percent to 1,049.20 per dollar as of 11:38 a.m. in Seoul, according to the data compiled by Bloomberg. The Kospi stock index gained 1.8 percent.

Exports, equivalent to about half the economy, increased to a record $51.4 billion last month from $47.8 billion in June, today’s report showed. Imports climbed 24.8 percent to $44.2 billion. The trade surplus was an all-time high $7.2 billion.
Cars Leading Growth

“Automobiles are leading the economy’s growth on strong sales both at home and abroad while semiconductor chips are a drag now due to weak prices,” Jung Gyu Don, director-general of Statistics Korea’s economic statistics bureau, said on July 29.

South Korea’s industrial production expanded at the slowest pace in nine months in June as export growth of semiconductor chips and other electronic goods slowed, according to the nation’s statistics agency.

“While the growth process is in a soft patch currently, inflation pressures remain high and the balance of risks is still tilted toward inflation,” Ma Tieying, an economist with DBS Bank Ltd. in Singapore, said before the release. He expects South Korea’s central bank to raise interest rates by half a percentage more this year.

Today’s trade report signals the economy may be rebounding from a second-quarter slowdown, when gross domestic product rose 0.8 percent from the previous quarter.

Kia Motors Corp. posted a 67 percent increase in second- quarter profit while Hyundai Motor Co., South Korea’s largest carmaker, reported a 37 percent gain in profit in the same period. Profits at Samsung Electronics Co. and Hynix Semiconductor Inc. declined 25 percent and 34 percent last quarter on falling chip prices, respectively.

[Letsbereal]

U.K. inflation accelerates to 4.4%
16 August 2011, by Simon Kennedy - London (MarketWatch)
http://www.marketwatch.com/story/uk-inflation-accelerates-to-44-2011-08-16

U.K. consumer price inflation accelerated to an annual rate of 4.4% in July from 4.2% in June, according to data released Tuesday by the Office for National Statistics.

The increase was due to upward pressure from a number of areas, including higher housing rent and rising fees in financial services.

[Letsbereal]

July import prices rise 0.3% on higher oil prices
16 August 2011, by Greg Robb - Washington (MarketWatch)
http://www.marketwatch.com/story/july-import-prices-rise-03-on-higher-oil-prices-2011-08-16

Higher crude oil prices drove import prices up by 0.3% in July, the Labor Department reported Tuesday.

[Letsbereal]

US Resumes Importing Inflation, Exporting Deflation, As Annual Import Prices Increase Highest Since August 2008
16 August 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/us-resumes-importing-inflation-exporting-deflation-annual-import-prices-increase-highest-august

Import prices rose 14% percent for the year ended in July, the largest 12-month advance since the index increased 18.1% for the year ended in August 2008.

[Letsbereal]

India’s Inflation Rate May ‘Peak’ in August, Finance Ministry’s Basu Says
16 August 2011, by Unni Krishnan and Kartik Goyal (Bloomberg)
http://www.bloomberg.com/news/2011-08-16/india-inflation-slows-to-9-22-pressure-for-higher-interest-rates-remains.html

Excerpt:

India’s inflation rate may “peak” in August and will be about 10%, Kaushik Basu, the chief economic adviser in the finance ministry, said after the price gauge eased for a third straight month in July.

The wholesale-price index rose 9.22% from a year earlier after a 9.44% jump in June, the commerce ministry said in New Delhi today. The median of 22 estimates in a Bloomberg News survey was for a 9.2% increase.

“Till December, inflation will stay around the same levels,” Basu told reporters in New Delhi today. “Next month, it will peak and will be close to 10%. After December, we’ll see a sharp drop in inflation.”

Price gains in India are the fastest among the so-called BRICS nations and policy makers have raised borrowing costs 11 times since the start of 2010. Central bank Governor Duvvuri Subbarao said Aug. 12 that it’s “too early to say” whether there would be a change in stance amid threats to expansion posed by Europe’s debt crisis and a faltering U.S. recovery.

“Higher inflation readings over the next few months are more or less factored in by markets,” said Sudhakar Shanbhag, who manages $1.9 billion as chief investment officer of Mumbai- based Kotak Mahindra Old Mutual Life Insurance Ltd. “The inflation indicators are favoring further tightening of rates.”

[Letsbereal]

Producer prices climb hotter-than-forecast 0.2%
17 August 2011, by Steve Goldstein - Washington (MarketWatch)
http://www.marketwatch.com/story/producer-prices-climb-hotter-than-forecast-02-2011-08-17

Producer prices rose 0.2% in July as a decline in energy costs didn’t immediately filter through the rest of the economy, according to government data released Wednesday.

[Letsbereal]

0% Interest Rates Lock in Inflation
17 August 2011, by Greg Hunter (USA Watchdog)
http://usawatchdog.com/zero-interest-rates-lock-in-inflation/

Excerpt:

The decision by the Fed, last week, to keep a key interest rate at near zero percent for 2 years is historic because the Fed has never done this before. 

This action will have profound negative effect on the U.S. dollar and its buying power. 

It also signals that even the Fed thinks the economy is not going to get better for at least 2 years. 

This action will affect every American and telegraphs a policy of inflation by the government. 

----

The reality since Ben Bernanke announced his QE2 policy in August 2010 is:

 • Unleaded gas prices are up 45%.

 • Heating oil prices are up 46%.

 • Corn prices are up 71%.

 • Soybean prices are up 26%.

 • Rice prices are up 13%.

 • Pork prices are up 31%.

 • Beef prices are up 25%.

 • Coffee prices are up 38%.

 • Sugar prices are up 48%.

 • Cotton prices are up 13%.

 • Gold prices are up 42%.

 • Silver prices are up 115%.

 • Copper prices are up 23%.

[Letsbereal]

July CPI up 0.5%, core rate up 0.2%
18 August 2011, by Greg Robb - Washington (MarketWatch)
http://www.marketwatch.com/story/july-cpi-up-05-core-rate-up-02-2011-08-18

The consumer price index increased 0.5%, the largest monthly gain since March, the Labor Department said Thursday.

Energy prices rebounded 2.8% in July after a 4.4% drop in June. Food prices rose 0.4% after a 0.2% gain in the prior month.

The core CPI, which excludes food and energy costs, was up 0.2% in July.

Read the full story: U.S. consumer prices climb 0.5% in July - Biggest rise since March; core rate’s up 0.2% http://www.marketwatch.com/story/us-consumer-inflation-rebounds-in-july-2011-08-18

[Letsbereal]

Hong Kong inflation set 'to worsen'
23 August 2011, (AFP)
http://www.france24.com/en/20110823-hong-kong-inflation-set-worsen

Excerpt:

Hong Kong's inflation has hit a 16-year high and economists warned Tuesday there are signs it will worsen in coming months as runaway housing and food costs continue to besiege the city's economy.

Figures released in the southern Chinese territory Monday showed inflation hit 7.9% year-on-year in July, the highest level since November 1995, when it stood at 8.4%.

The hike, up from 5.6% in June, was driven largely by rises in rent and food prices as well as fees for overseas package tours thanks to the weakening US dollar, to which the HK dollar is pegged, the Census and Statistics Department said in a statement.

[Letsbereal]

Hong Kong’s ‘Scary’ 7.9% Inflation May Fuel Wages Even as Recession Looms
23 August 2011, by Sophie Leung (Bloomberg)
http://www.bloomberg.com/news/2011-08-22/hong-kong-s-worst-inflation-since-1995-may-boost-recession-risk.html

Singapore’s Inflation Accelerates to Fastest Pace Since January on Housing
23 August 2011, by Shamim Adam and Sarina Yoo (Bloomberg)
http://www.bloomberg.com/news/2011-08-23/singapore-s-inflation-quickens-to-5-4-adding-pressure-for-currency-gains.html

[Letsbereal]

Japan consumer prices up 0.1% in July
26 August 2011, Tokyo (AFP)
http://www.google.com/hostednews/afp/article/ALeqM5hAgRI-TzwVBSDJdCWoquXomhdqHA

Japan's core consumer prices rose 0.1% in July from a year earlier, beating market expectations of a 0.1% fall, government data showed Friday.

The core consumer price index, which excludes volatile food prices, rose despite market expectations that prices would have fallen due to the yen's strength and the government's revision to the data's base year.

Japan has been plagued with a deflationary trend for years and the results came after the government changed the data's base year to 2010 from 2005, which was expected to put a downward bias on the data.

Analysts expect the yen's recent appreciation to add further downward pressure to consumer prices.

"Considering the impact of the high yen and slowing overseas economies, in addition to the base-year revision, on-year changes in the core CPI are unlikely to turn positive for about the next two years," said Kyohei Morita, chief Japan economist at Barclays Capital.

The internal affairs ministry said Tokyo-area consumer prices, a leading indicator for the national trend, fell an estimated 0.2% in August against a market forecast for a fall of 0.1%.

Japan is nevertheless expected to continue on its path of monetary easing, with the Bank of Japan pledging to hold its key rate near zero until it is satisfied prices have stabilised.

[Letsbereal]

Typical Case of Biflation (google trans from Dutch) http://tinyurl.com/4yt8sm7

[Letsbereal]

Hyperinflaton Special Report (Update 2011)
15 March 2011, (Shadowstats) 
http://www.shadowstats.com/article/hyperinflation-2010



• Inflation Spreads Throughout Economy as Annual “Core” Inflation Jumps Again

• Consumer Inflation at 33-Month High 

• July’s Annual Inflation: 3.6% (CPI-U), 4.1% (CPI-W), 11.2% (SGS)

[Letsbereal]

ECB's Trichet: Inflation above 2% in coming months
29 August 2011, by William L. Watts - Frankfurt (MarketWatch)
http://www.marketwatch.com/story/ecbs-trichet-inflation-above-2-in-coming-months-2011-08-29

European Central Bank President Jean-Claude Trichet told a European Parliament committee on Monday that the institution expects annual inflation in the 17-nation euro zone to remain above 2% "over the months ahead."

Trichet said the Governing Council "is determined to ensure that inflation expectations continue to be firmly anchored" in line with the ECB's target of keeping inflation below but close to 2%.

Trichet defended the ECB's decision to resume bond purchases through its Securities Market Program and said the actions remain separate from the ECB's monetary policy stance, emphasizing that liquidity provided by the bond purchases is reabsorbed through the bank's market operations.

[Letsbereal]

Disruptions to Food Supply to ‘Ratchet Up Prices,’ Olam’s Verghese Says
30 August 2011, by Luzi Ann Javier (Bloomberg)
http://www.bloomberg.com/news/2011-08-30/disruptions-to-food-supply-to-ratchet-up-prices-olam-s-verghese-says.html

Excerpt:

Global food costs will remain elevated because a potential slowdown in economic growth is unlikely to hurt demand and weather-related disruptions to supply could “ratchet up prices,” Olam International Ltd. said.

Combined global inventories of wheat, corn and rice will drop 2.5% to a four-year low as farmers fail to keep pace with demand, U.S. Department of Agriculture data shows.

“The food complex is relatively recession-resistant,” said Sunny Verghese, chief executive officer of Olam, one of the world’s three biggest rice suppliers. “Because of the growing imbalance in the demand and supply of food, and because the stocks-to-consumption ratios are low, if there’s any weather- related disruption, it can ratchet up prices.”

Rice, the staple for half the world, jumped 53% in the past year in Chicago, while corn surged 73% and wheat advanced 12%, as flooding, hot temperatures and dry weather in the U.S. and parts of Europe hurt crops. Rising grain prices helped send the United Nations Food Price Index up 10 times in the 12 months to June and reached a record in February.

Global corn stockpiles were forecast by the USDA to plunge in the 2011-2012 season to 114.5 million metric tons. That would be the lowest level in five years as hot weather in the U.S., the world’s largest grower and exporter, curbs yields and demand climbs for the grain used in livestock feeds and ethanol production.

[Letsbereal]

Annual Inflation Hits 4%
30 August 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/annual-inflation-hits-4

Excerpt:

There is the CPI... and then there is the MIT's billion price project which, as the name implies, tracks the prices of a billion products in real time.

And according to the latter, annual inflation has hit a multi year high of about 4%.

Perhaps someone can advise the talented Mr Evans that the 3% inflation he would so love to achieve... has in fact been eclipsed.

At least, according to the real world.

So take 4% inflation, add $2.5 trillion in "much more" easing, and what you get is only an economic Ph.D.'s guess.

Alas, we are unqualified to have an opinion on the matter.

[Letsbereal]

Euro-zone annual inflation steady at 2.5% in Aug.
31 August 2011, by William L. Watts - Frankfurt (MarketWatch)
http://www.marketwatch.com/story/euro-zone-annual-inflation-steady-at-25-in-aug-2011-08-31

Annual inflation in the euro zone remained at 2.5% in August, unchanged from the pace seen in July, the European Union statistics agency Eurostat said Wednesday in a preliminary estimate.

The rate was in line with forecasts and remains above the European Central Bank's target of near but just below 2%.

Separately, Eurostat said the euro-zone unemployment rate in July stood at 10%, unchanged from June.

Economists had forecast a small decline to 9.9%.

[Letsbereal]

South Korean Inflation Accelerates to 3-Year High, Pressuring BOK to Act
1 September 2011, by William Sim and Eunkyung Seo (Bloomberg)
http://www.bloomberg.com/news/2011-08-31/south-korean-inflation-accelerates-to-3-year-high-pressuring-bok-to-act.html

Excerpt:

South Korea’s inflation accelerated to the fastest pace in three years in August on rising food prices, adding to pressure on the central bank to increase borrowing costs.

Consumer prices rose 5.3% from a year earlier, after a 4.7% gain in July, Statistics Korea said today in Gwacheon, south of Seoul. That was higher than any forecast by 11 economists, whose median estimate was 4.8% in a Bloomberg News survey. Prices rose 0.9% from July.

The Bank of Korea needs to weigh whether the threat of inflation is bigger than risks to growth as slowing global demand weighs on industrial output and corporate and consumer confidence. Stronger-than-expected exports last month may have strengthened the case for boosting borrowing costs.

“Today’s data shows the nation needs higher interest rates as inflation pressures will likely stay high and growth momentum is still intact despite the global financial market rout,” said Kong Dong Rak, a fixed-income analyst at Taurus Investment & Securities Co. in Seoul.

[Letsbereal]

The current rate of inflation, 3.6% as measured by the consumer price index, means 10-year notes yield negative 1.41% after accounting for costs in the economy.

FROM: Treasuries Decline After Advancing Asian Stocks Reduce Demand for Safety
1 September 2011, by Monami Yui (Bloomberg)
http://www.bloomberg.com/news/2011-09-01/treasuries-retain-losses-as-gains-in-asian-equities-sap-safety-demand.html

[Letsbereal]

Indian Food Inflation Is Red Hot Again
1 September 2011, by Mamta Badkar (Business Insider)
http://www.businessinsider.com/indias-food-inflation-picks-up-again-2011-9

Excerpt:

India's wholesale price index (WPI), which measures food inflation, rose to 10.05% in the week ending August 20, from a year ago, according to The Economic Times.

Inflation had eased to single digits in June but has picked up since.

The price of fruits went up 21.58% and vegetables were up 15.78% year-on-year for the week ending August 20.

The cost of potatoes were up 13.31% for the same period, while eggs, meat and fish jumped 12.62% and milk increased 9.22%.

The price of pulses and wheat however fell during the same period.  

Prices of onions surged 57.01% year-on-year for the week ending August 20.

Onions which are crucial to Indian cooking have been responsible for the downfall of political parties.

Across the border the Chinese government is also terrified of rising food prices that had sparked riots in Tiananmen Square.

----

Indian consumers have lost $128.7 billion to inflation in the last three years mostly because of rising food and fuel prices.

So it would come as no surprise that workers are demanding higher wages to bear the brunt of food costs.

Now the country is grappling with wage inflation as well.

Recently, state-controlled Coal India's unions demanded a 100% salary hike, while wages for the Bombay Stock Exchange (BSE) 500 firms grew 19%, in the three months to June.

[Letsbereal]

Inflation May Be ‘Monster’ Looming for Insurers, Sullivan Says
8 September 2011, by Kevin Crowley (Bloomberg)
http://www.bloomberg.com/news/2011-09-08/inflation-may-be-monster-under-the-bed-facing-insurers-sullivan-says.html

Excerpt:

Inflation may be a bigger risk for insurers than tsunamis or Europe’s sovereign debt crisis because claims costs could climb faster than the value of the firms’ investments, said Martin Sullivan, deputy chairman of broker Willis Group Holdings Plc.

“Inflation could well be the monster under the bed,” Sullivan said today at an Insurance Insider conference in London, billed as his first public speech since he left as chief executive officer of American International Group Inc. (AIG) Rising prices “can be more deadly to an insurer’s economic health than defaults, earthquakes, winter storms, or tsunamis.”

Consumer prices in the U.S., China, Germany and the U.K. have advanced the most since 2008 this year, spurred by higher energy costs and government efforts to stimulate economies. Inflation adds to insurers’ costs for rebuilding property, treating injuries and paying legal claims that can emerge years after policies are sold, a problem that can be magnified by low interest rates, said Sullivan.

The yield on 10-year Treasuries is about 2%, compared with a U.S. inflation rate of 3.6%. The so- called real yield, or difference between the two, is negative 1.6 percentage points, the lowest since 2008. U.S. insurers hold more than $3 trillion in bonds to help back policies.

“Of all the issues out there, inflation could be the one that comes to surprise a lot of companies,” said Sullivan. “In a zero interest-rate environment, reinsurers face two options: they either accept a continuously weakening balance sheet or they raise their rates.” The Federal Reserve has kept benchmark interest rates in a target range of zero to 0.25%.

Also listen to:

Dr. Marc Faber on King World News – Audio http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/9_Dr._Marc_Faber.html

[Letsbereal]

Food-Price Gains Driven by Chinese Consumers Defy Easing Global Inflation
9 September 2011, by Scott Lanman and Shobhana Chandra (Bloomberg)
http://www.bloomberg.com/news/2011-09-08/food-price-gains-defy-policy-makers-bid-to-ease-inflation-panelists-say.html

Excerpt:

Rising food prices that defy easing global inflation may challenge policy makers in countries including China to control costs without hurting economic growth, panelists at a forum said yesterday.

A growing middle class seeking higher-protein foods is contributing to increased demand and prices, Abby Joseph Cohen, partner and senior U.S. investment strategist at Goldman Sachs Group Inc., said at the Bloomberg Global Inflation Conference in New York hosted by Bloomberg Link.

Central banks “should be concerned” about rising food prices, said Roberto Rigobon, a Massachusetts Institute of Technology professor, while James Rickards, senior managing director of Tangent Capital Partners, said China risks harming employment if the country tries too hard to contain prices. Their comments compare with signals yesterday from the Federal Reserve and the European Central Bank that the inflation outlook is benign enough to allow further easing.

China is “between a rock and a hard place, because they’re very concerned about inflation,” Rickards said during a panel discussion. At the same time, raising interest rates too much may hurt export-related jobs important to the country’s economy. “Inflation and unemployment are both highly destabilizing” for China, he said.

Inflation remains a major concern of central bankers in Asia’s emerging markets, while policy makers in developed nations are focused on a slowdown in growth. Chinese inflation accelerated to a three-year high of 6.5% in July, prompting Premier Wen Jiabao to say Aug. 31 that his top economic priority is stabilizing prices. The rate slowed to 6.2% in August, the National Bureau of Statistics said in Beijing today.

[Letsbereal]

Former Fed Official Poole Sees Risk Of “Astonishing Rise” In Inflation
8 September 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/former-fed-official-poole-sees-risk-astonishing-rise-inflation

Excerpt:

Speaking at a Bloomberg inflation meeting this morning, former St. Louis Fed official William Poole was quite vociferous in his concerns over current Fed policy noting that Bernanke paid too much attention to equity prices. He also noted that there is a risk of an 'astonishing rise in inflation'.

    *WILLIAM POOLE SEES RISK OF `ASTONISHING' RISE IN INFLATION

    *POOLE SAYS BERNANKE `PAID TOO MUCH ATTENTION TO EQUITY PRICES'
 

But perhaps in antithesis of Trichet's 'You Can't Handle The Lies' moment this morning, this headline caught our eyes:

    *POOLE: BERNANKE NEEDS TO SAY FED CAN'T HEAL ALL ECONOMY'S ILLS

[Letsbereal]

Global Food prices remain close to all time high
8 September 2011, (FAO)
http://www.potatopro.com/Lists/News/DispForm.aspx?ID=5788

The FAO Food Price Index averaged 231 points in August 2011, nearly unchanged from July and 26% higher than in August 2010.

[Letsbereal]

Inflation rises again following massive hikes in utility bills and soaring food prices
13 September 2011, (Daily Mail)
http://www.dailymail.co.uk/news/article-2036802/Inflation-rises-following-massive-hikes-utility-bills.html?ito=feeds-newsxml

Excerpt:

Inflation today climbed to a three-year high thanks to a huge rise in the cost of utility bills and food prices.

The consumer prices index (CPI) measure of inflation for August rose to 4.5%, up from 4.4% in July, according to the Office of National Statistics.

This is the highest rate since September 2008, when the financial crash pushed inflation to 5.2%.

The broader Retail Price Index, which includes housing costs, has risen to 5.3%, from 5% in July.

Housing, water, electricity and gas prices increased by 5.1% year-on-year, the ONS said - the highest annual increase since July 2009.

Scottish Power and British Gas raised their gas tariffs in the month, by 19% and 18% respectively, alongside big increases for electricity, helping to add to the squeeze in household incomes already hit by rising food and fuel costs.

Mervyn King: The Governor of the Bank of England has repeatedly had to explain high inflation rates

Victoria Cadman, an economist at broker Investec, suggests that the Scottish Power increase alone might have added 0.1% per cent to the CPI figure, and expects British Gas's higher tariffs to have an even bigger impact on the figures for September.

The pressure on inflation from energy suppliers is not likely to let up as Scottish & Southern Energy and E.ON are raising their prices this month and Npower hikes bills from October 1.

In August, food prices rose by nearly 5% year-on-year.

Core consumer price inflation, which excludes food and fuel, was 3.1% - significantly lower than the overall CPI figure.