Don't Be Fooled, Inflation Is Already Here

[Letsbereal]

French Inflation Climbs to Highest Level in Almost Three Years on Energy
13 September 2011, by Mark Deen (Bloomberg)
http://www.bloomberg.com/news/2011-09-13/french-inflation-climbs-to-highest-level-in-almost-three-years-on-energy.html

Excerpt:

French inflation accelerated to the highest in almost three years in August as the end of summer sales boosted prices of manufactured goods and the cost of energy jumped.

The inflation rate, calculated using a harmonized European Union method, rose to 2.4% from 2.1% in July, national statistics office Insee said today in an e-mailed statement.

That’s the highest since October 2008.

[Letsbereal]

China CPI likely to rise 5.5% in 2011: report
13 September 2011, by China Bureau - Shanghai (MarketWatch)
http://www.marketwatch.com/story/china-cpi-likely-to-rise-55-in-2011-report-2011-09-13

China's consumer price index is likely to increase 5.5% in 2011 from a year earlier, exceeding Beijing's full-year inflation target of 4%, the state-run China Securities Journal reported Wednesday, citing a government think tank.

Niu Li, a director at the State Information Center, was cited as saying that China should allow a faster appreciation in its currency to combat inflation and boost domestic consumption.

China's CPI rose 6.2% in August from a year earlier, a tad lower than July's 6.5% increase.

Newspaper website: http://www.cs.com.cn

[Letsbereal]

Indian Inflation Quickens to 13-Month High, Adds to Interest-Rate Pressure
14 September 2011, by Unni Krishnan (Bloomberg)
http://www.bloomberg.com/news/2011-09-14/indian-inflation-quickens-to-13-month-high-adds-to-interest-rate-pressure.html

Excerpt:

India’s inflation accelerated to the highest level in more than a year, maintaining pressure for further interest-rate increases even as economic growth slows.

The benchmark wholesale-price index rose 9.78% in August from a year earlier after a 9.22% jump in July, the commerce ministry said in a statement in New Delhi today.

The median of 25 estimates in a Bloomberg News survey was for a 9.64% gain.

The Reserve Bank of India will probably raise rates by a quarter of a percentage point at the Sept. 16 policy meeting, according to 11 of 12 economists in another Bloomberg survey. Governor Duvvuri Subbarao has to weigh the risks to expansion from Europe’s debt crisis and a faltering U.S. recovery against price pressures, which may be stoked by a weaker rupee.

“It is a bad enough number that the RBI cannot switch off just yet,” said Rajeev Malik, a senior economist at CLSA Asia Pacific Markets in Singapore.

“The global backdrop is an important opposing force but the domestic inflation numbers don’t leave much room. So, some action has to happen.”

[Letsbereal]

U.S. consumer prices jump 0.4% in August - ‘Core’ rate of inflation hits highest 12-month level since late 2008
15 September 2011, by Jeffry Bartash - Washington (MarketWatch)
http://www.marketwatch.com/story/us-consumer-prices-jump-04-in-august-2011-09-15-851480

Excerpt:

Americans paid more money for a broad range of goods and services last month, including gas, food, clothing and shelter, and the higher costs ate into their inflation-adjusted income.

The Labor Department on Thursday said consumer prices rose a seasonally adjusted 0.4% in August.

The increase was largely responsible for a 0.6% drop in the average hourly wages of U.S. workers, adjusted for inflation.

It marked the biggest one-month decline in more than three years.

Stripping out the volatile food and energy categories, the “core” rate of consumer price inflation rose a smaller 0.2%.

Yet the core rate has also been rising steadily, hitting a 12-month level of 2.0% for the first time since November 2008.

Wall Street and the Federal Reserve pay more attention to the core rate because it usually gives a better idea of longer-term inflationary trends.

----

Over the past 12 months, consumer prices have climbed an unadjusted 3.8%, the Labor Department said Thursday. As recently as November, the 12-month increase was just 1.1%.

The energy index rose 1.2% last month, led by an increase in gasoline.

Energy prices have soared 18.4% over the past 12 months.

Food prices increased a sharp 0.5% in August, following a 0.4% gain in July. Cereals, baked goods and dairy products rose the most.

Food costs have climbed 4.6% over the past 12 months.

The government’s “food at home” index, which excludes takeout orders and restaurant purchases, rose an even higher 0.6% in August, putting its 12-month increase at 6.0%.

[Letsbereal]

Cleveland Fed inflation gauge rises 0.3% in August
15 September 2011, by Jeffry Bartash - Washington (MarketWatch)
http://www.marketwatch.com/story/cleveland-fed-inflation-gauge-rises-03-in-august-2011-09-15

The Cleveland Federal Reserve on Thursday said its trimmed-mean consumer price index rose 0.3% in August.

The trimmed-mean CPI is seen by some economists as a better measure of underlying inflation than the Labor Department's so-called core rate.

The trimmed-mean CPI has risen at an annual rate of 2.4% in May, which is lower than the 3.8% rate recorded by the Labor Department's core CPI.

The trimmed-mean CPI does not exclude food and energy like the Labor data, instead subtracting the most volatile categories in each monthly report.

[Letsbereal]

Charting inflation, manufacturing and real estate - Week’s economic indicators show inflation on uptick
16 September 2011, (MarketWatch)
http://www.marketwatch.com/story/charting-inflation-manufacturing-and-real-estate-2011-09-16

Excerpt:



Core inflation

Inflation excluding food and energy hit 2% in August, the highest 12-month rate since late 2008, according to data released this week.

Central bank officials pay close attention to core inflation since it’s proven to be a better predictor of future inflation than the headline.

Though the Fed pays most attention to a different version of core inflation (one related to personal consumption expenditure),

the chart nonetheless demonstrates the central bank has limited scope to try out so-called extraordinary measures when it determines its next move on Wednesday.

See story on consumer prices: http://www.marketwatch.com/story/us-consumer-prices-jump-04-in-august-2011-09-15-851480

[Letsbereal]

India hikes rates as inflation fight continues
16 September 2011, by Nick Godt - Mumbai (MarketWatch)
http://www.marketwatch.com/story/india-hikes-rates-as-inflation-fight-continues-2011-09-16

[Letsbereal]

China’s Wen pledges to step up inflation fight
17 September 2011, (AFP)
http://www.google.com/hostednews/afp/article/ALeqM5hWLOnd2iBXWW6A4QJYVH7sqnM0mA

ahahaahahaahahahaah ! They’ve been saying that for at least a year now but the truth is they can do nothing about it without appreciating the yuan which they don’t wonna do now for some reason in this point in time.

Funny thing is that the world economy is cooling which is putting somewhat of a damper on inflation (while still amazingly high regarding the circumstances) they clame success.

It’s stagflation stup!

All yada yada aside China increased its Treasury holdings in July for the fourth straight month http://www.marketwatch.com/story/foreigners-demand-for-us-assets-higher-in-july-2011-09-16

[Letsbereal]

IMf's Zhu: China faces long-term high inflation
17 September 2011, by China Bureau - Shanghai (MarketWatch)
http://www.marketwatch.com/story/imfs-zhu-china-faces-long-term-high-inflation-2011-09-17

China faces an extended period of high inflation, the China Securities Journal on Saturday reported International Monetary Fund Deputy Managing Director Zhu Min as saying.

Speaking to reporters at the World Economic Forum in the northeastern Chinese coastal city of Dalian, Zhu said that China should maintain its tight monetary policy, the report said.

Zhu said that China should take controlling housing prices and targeting high inflation as long-term policy goals, it added.

The comments mirrored Zhu's speech Wednesday at the World Economic Forum, at which he said emerging markets should maintain their tight monetary policies in order to control inflation.

He did not refer to China specifically in his speech.

China's consumer price index rose 6.2% in August from a year earlier, down from a three-year high of 6.5% in July.

On Thursday, the vice chairman of China's National Development and Reform Commission said that consumer prices had hit a "turning point" after months of steady increases,

but that the country would likely exceed the government's forecast of 4% inflation for the year.

Newspaper website: http://www.cs.com.cn/

[Letsbereal]

China Faces Surge in ‘Hot Money’ Inflows on Market Turmoil, PBOC Data Show
21 September 2011, (Bloomberg)
http://www.bloomberg.com/news/2011-09-21/china-faces-hot-money-surge-on-global-turmoil.html

Excerpt:

Turmoil in global financial markets may be spurring a surge in flows of speculative capital into China as investors bet on the nation’s growth and prospects for gains in the yuan.

Financial institutions’ yuan positions, accumulated from purchases of foreign exchange by the central bank, had a net gain of 376.94 billion yuan ($59 billion) in August, 72% more than in July and the biggest increase in five months, central bank data showed today.

Economists watch the numbers for signs of inflows of so-called hot money.

Inflows of capital may complicate central bank efforts to tame inflation and limit the risk of asset bubbles in the real- estate market.

With lenders’ reserve requirements already at record levels, the People’s Bank of China may rely on selling bills to soak up cash.

“It’s clear money is flowing into China if you consider the global turmoil last month and the low yields available elsewhere,” Shen Jianguang, a Hong Kong-based economist with Mizuho Securities Asia Ltd. said in an interview in Beijing today.

“Given the liquidity crunch facing small and medium- sized enterprises it would be difficult for the PBOC to raise reserve requirements any further.”

Inflows of money may add pressure for China’s currency to climb and help to suppress money-market rates.

The People’s Bank of China set the yuan’s reference rate 0.17% stronger at 6.3772 per dollar today, the highest since 2005.

The International Monetary Fund estimates China’s economy will grow 9.5% this year.

[Letsbereal]

USDA hikes inflation forecasts for beef, eggs
23 September 2011, by Ian Berry (MarketWatch)
http://www.marketwatch.com/story/usda-raises-price-view-for-beef-eggs-2011-09-23

Excerpt:

Beef prices will be up 8% to 9% in 2011, up from a previous forecast of a 7% to 8% increase, the U.S. Department of Agriculture said in a monthly report Friday.

Beef prices have soared to record highs this year thanks in part to strong export demand.

Meanwhile, supplies are expected to tighten as ranchers liquidate their herds due to a severe drought in the southern Plains that has caused pastureland to wither.

The USDA also increased its overall meat price projection for 2011, to 6.5% to 7.5%, up half of a percentage point.

It increased its projected hike in egg prices to 5% to 6%, also up half a percentage point, noting that the inventory of hens decreased during five of the first seven months this year.

Overall food inflation was left unchanged, however, at 3% to 4% this year and 2.5% to 3.5% in 2012.

[Letsbereal]

Global food prices to remain high: HSBC
26 September 2011, by Surabhi Sahu - Singapore (MarketWatch)
http://www.marketwatch.com/story/global-food-prices-to-remain-high-hsbc-2011-09-26

Global food prices will likely remain high due to robust fundamentals despite worries of a broadening crisis in the euro zone, Pedro Herrera, HSBC's senior vice president global research for Latin American equities, said Monday.

In the grains complex, corn prices, which have some risen by some 50% from a year ago, will likely remain elevated due to a tight stocks-to-use ratio, estimated at 13.6% in the marketing year that began Sept. 1, compared with the 10-year average of 18%, Herrera said on the sidelines of HSBC's Global Natural Resources Conference.

Sugar futures on New York's InterContinental Exchange will also remain high and are expected to trade between 25 cents and 30 cents a pound for the rest of the year, Herrera said.

The forecast excludes the impact of speculative activity and any significant changes in global weather, he noted.

ICE October sugar settled at 24.84 cents/lb Friday.

Ample production in the northern hemisphere is expected to weigh on prices, although the downside will likely be limited due to a fall in Brazilian output, Herrera said.

[Letsbereal]

Japanese wholesale rice prices up 10%-20% on year
25 September 2011, (MarketWatch)
http://www.marketwatch.com/story/japanese-wholesale-rice-prices-up-10-20-on-year-2011-09-25

The wholesale prices of Japanese rice harvested this fall have gone up 10% to 20% from last year, a trend that may boost retail prices if it continues, Kyodo News reported, citing industry officials.

The higher prices were quoted by a federation of farm cooperatives known as Zen-Noh, Kyodo said.

Zen-Noh wields considerable influence over rice prices because it handles about 40% of the rice produced in the country, Kyodo reported.

[Letsbereal]

U.K. businesses' bank deposits lose from inflation
25 September 2011, by Vladimir Guevarra - London (MarketWatch)
http://www.marketwatch.com/story/uk-businesses-bank-deposits-lose-from-inflation-2011-09-25

Businesses in the U.K. are losing around GBP10.6 billion a year as inflation erodes the value of their cash deposits in banks, accountancy group UHY Hacker Young said Monday.

-- UHY Hacker Young says deposits eroded by low interest rates and high inflation

-- Recommends distributing money to shareholders, investing back into business.

-- Banking sector consolidation may have stifled competition for better interest rates

[Letsbereal]

German Notes Fall as Inflation Quickens, Demand Drops at Auction
28 September 2011, by Lukanyo Mnyanda and Lucy Meakin (Bloomberg)
http://www.bloomberg.com/news/2011-09-28/german-10-year-bunds-rise-first-time-in-four-days-yield-falls-to-1-93-.html

Excerpt:

German 10-year bonds declined for a fourth day after reports showed inflation in five states accelerated in September, reducing the purchasing power of the fixed payments from debt.

Five-year notes fell as investors bid for fewer securities than were available at an auction of the debt today. Quickening inflation makes it less likely the European Central Bank will cut interest rates at its policy meeting next week. Greek two- year notes dropped as German Chancellor Angela Merkel signaled policy makers may review the terms of the Mediterranean nation’s second bailout.

“The market could see today’s inflation numbers as a good reason for the ECB to explain that a rate cut is not needed in the short term,” said Annalisa Piazza, a fixed-income strategist at Newedge Group SA in London. “German paper is quite expensive relative to other European countries, so demand is not as strong as it used to be.”

The 10-year German yield rose three basis points to 2% at 11:44 a.m. in London, the first time it has breached that level since Sept. 15. The 2.25% security due September 2021 lost 0.310, or 3.10 euros per 1,000-euro ($1,368) face amount, to 102.265.

The two-year yield increased six basis points to 0.60%, and the five-year yield gained seven basis points to 1.28%.

The annual inflation rate quickened to 2.8% from 2.3% in North Rhine-Westphalia, and to 2.3% from 1.9% in Hesse, the states’ statistics offices said today.

The rates in Saxony, Bavaria and Brandenburg also climbed.

[Letsbereal]

German Inflation Increases In September
28 September 2011, (RTTNews)
http://www.rttnews.com/Content/EuropeanEconomicNews.aspx?Node=B2&Id=1723171

Excerpt:

Germany's annual inflation, measured under the EU methodology, accelerated in September, preliminary data released by statistical office Destatis showed Wednesday.

The harmonized index of consumer prices (HICP) increased 2.8% annually in September, faster than the 2.5% rise seen in August.

[Letsbereal]

ECB Effort to Contain Crisis Is Complicated by Surprise Surge in Inflation
30 September 2011, by Simone Meier (Bloomberg)
http://www.bloomberg.com/news/2011-09-30/european-inflation-unexpectedly-accelerates-to-the-fastest-pace-since-2008.html

Excerpt:

European inflation unexpectedly accelerated to the fastest in almost three years in September, complicating the European Central Bank’s task as it fights the region’s worsening sovereign-debt crisis.

The euro-area inflation rate jumped to 3% this month from 2.5% in August, the European Union’s statistics office in Luxembourg said today in an initial estimate.

That’s the biggest annual increase in consumer prices since October 2008.

Economists had projected inflation to hold at 2.5%, according to the median of 38 estimates in a Bloomberg survey.

Faster inflation increases pressure on an economy already hurt by tougher austerity measures and waning investor confidence as governments struggle to contain the fiscal crisis.

European economic confidence slumped more than economists forecast this month and German retail sales fell the most in more than four years in August.

Commerzbank AG said today that the region “looks set to slip into a recession.”

“It’s more of a technical thing than a fundamental change,” said Laurent Bilke, global head of inflation strategy at Nomura International Plc in London, which was the only bank to forecast the right inflation rate in the Bloomberg survey.

“The ECB is not going to cut in October and obviously strong inflation doesn’t give them much room for maneuver on that side.

They will probably need a few more months of negative economic news to get there, maybe in November or December.”

The euro extended declines after the report, trading at $1.3493 at 12:49 p.m. in Brussels, down 0.7% on the day.

The Euro Stoxx 50 Index dropped as much as 2.3%.

[Letsbereal]

Turkey CB Expects Inflation To Exceed Target By Year-end
4 October 2011, (RTTNews)
http://www.rttnews.com/Content/AllEconomicNews.aspx?Node=B2&Id=1727159

Turkey's inflation is set to continue rising for the rest of the year and will be markedly above target by year-end, the country's central bank said Tuesday in a monthly report on price developments.

The Turkish central bank's inflation target for 2011 is 5.5%.

The central bank expects increases in utility prices to add 0.5 percentage points to annual inflation.

The target for next year is set lower at 5%.

Inflation slowed to 6.15 percent in September from August's 6.65%, official figures showed yesterday.

[Letsbereal]

Factory gate inflation highest in three years
7 October 2011, (Reuters - The Telegraph)
http://www.telegraph.co.uk/finance/economics/8813188/Factory-gate-inflation-highest-in-three-years.html

British factory gate inflation rose to its highest in nearly three years in September, raising doubts about whether consumer price inflation will slow next year as rapidly as the Bank of England predicts.

[Letsbereal]

China 2011 inflation likely around 5.5%: report
10 October 2011, by China Bureau - Shanghai (MarketWatch)
http://www.marketwatch.com/story/china-2011-inflation-likely-around-55-report-2011-10-10

China's inflation rate in 2011 is likely to be around 5.5%, while its economic growth rate is expected be around 9.4% this year, the state-run China Securities Journal reported Tuesday, citing a report from a top state think tank.

Imported inflationary pressures, rising domestic agricultural product prices and higher labor costs contributed to the increase in the consumer price index this year, the newspaper said, citing a report released by the Chinese Academy of Social Sciences.

China's economic growth is likely to slow down in 2011 because of a slackening world economy, the shift to a prudent monetary policy and the expiration of domestic purchase incentives, the newspaper added

China's economy expanded 10.4% in 2010, while its CPI grew 3.3% last year.

[Letsbereal]

China CPI rises 6.1% in September
13 October 2011, by Sarah Turner - Sydney (MarketWatch)
http://www.marketwatch.com/story/china-cpi-rises-61-in-september-2011-10-13

Excerpt:

China’s consumer price index rose 6.1% in September from a year earlier, according to reports, a weaker-than-forecast increase that may bode well for future price trends in the world’s second-largest economy..

----

The latest CPI reading for China marked a slowdown from August, when prices rose 6.2% annually.

----

“For the moment, we remain in policy stasis – no more tightening, but no real loosening – while Chinese authorities nervously eye developments in the euro zone,” he said.

CPI rose 0.5% month-on-month in September, a higher reading than the 0.3% increase recorded in August.

[Letsbereal]

Bianco Says Core CPI May Rise to 2.5% Pressuring Fed – Bloomberg Vid http://www.youtube.com/watch?v=0u60QzPUCTY

Oct. 13 (Bloomberg)

James Bianco, president of Bianco Research LLC in Chicago, talks about the outlook for U.S. inflation and the implications for Federal Reserve monetary policy.

Bianco also discusses volatility in U.S. stocks, the U.S. housing market and his investment strategy.

He speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg)

[Letsbereal]

India’s Inflation Exceeds 9% for 10th Month, Increasing Pressure on Rates
14 October 2011, by Unni Krishnan (Bloomberg)
http://www.bloomberg.com/news/2011-10-14/india-s-inflation-exceeds-9-for-10th-month-increasing-pressure-on-rates.html

Excerpt:

India’s inflation exceeded 9 percent for a 10th straight month in September, maintaining pressure on the central bank to extend its record interest-rate increases.

The benchmark wholesale-price index rose 9.72% from a year earlier after a 9.78% jump in August, the commerce ministry said in New Delhi today. The median of 21 estimates in a Bloomberg News survey was for a 9.75% increase.

Elevated inflation in India and China are crimping room for policy makers to ease monetary policy and support global growth amid Europe’s debt crisis and a faltering U.S. recovery. India’s central bank Governor Duvvuri Subbarao said yesterday that a more than 9% inflation is above “comfort level.”

“The inflation trajectory is not decidedly shifting downwards,” Samiran Chakraborty, a Mumbai based economist at Standard Chartered Plc, said before the report. He expects the Reserve Bank of India to raise its repurchase rate by a quarter of a percentage point to 8.5% at its Oct. 25 meeting.

India’s rupee has weakened 8.9% against the dollar this year as investors sold stocks in emerging markets because of risks to global growth, making the currency the worst performer in Asia and threatening to boost import costs.

The currency gained 0.1% to 49.06 per dollar at 11.47 a.m. in Mumbai. The yield on the 7.8% government note due April 2021 rose six basis points, or 0.06 percentage point, to 8.79%. The BSE India Sensitive Index advanced 0.6%.

[Letsbereal]

Bank of Korea’s Kim Says 2011 Inflation Likely to Surpass 4% Target Limit
13 October 2011, by Eunkyung Seo and Deirdre Bolton (Bloomberg)
http://www.bloomberg.com/news/2011-10-13/bank-of-korea-s-kim-says-inflation-likely-to-exceed-4-limit.html

Excerpt:

Bank of Korea Governor Kim Choong Soo said inflation is likely to exceed the central bank’s 4% target limit this year and board members haven’t discussed cutting interest rates.

“For the year of calendar 2011, probably inflation as measured by CPI may turn out to be slightly over 4%,” Kim, 64, said in an interview in Seoul yesterday, referring to the consumer price index. “We should meet the medium-term target” of 2% to 4% next year, he said.

Kim spoke after his officials voted unanimously to keep the benchmark interest rate unchanged, and a report on China’s trade highlighted the threat to export-dependent Asian economies from Europe’s debt crisis. Already, Indonesia has cut rates, the Philippines has unveiled a stimulus plan and China this week announced measures to aid small businesses.

Kim said he’s not pessimistic about the outlook of the U.S. economy, describing it as resilient. He added that Europe may take longer to recover.

The won strengthened 0.9% to 1,155.90 per dollar in Seoul yesterday, according to data compiled by Bloomberg. The currency lost more than 8% over the past three months, Asia’s second-worst performance, fueling inflationary pressure by increasing import costs. The Kospi Index rose 0.8%.

[Letsbereal]

Euro-zone Sept. annual inflation confirmed at 3%
14 October 2011, by William L. Watts - Frankfurt (MarketWatch)
http://www.marketwatch.com/story/euro-zone-sept-annual-inflation-confirmed-at-3-2011-10-14

Euro-zone annual inflation accelerated to a 3% annual rate in September from 2.5% in August, the European Union statistics agency Eurostat reported Friday, confirming a preliminary estimate. Monthly inflation rose 0.8% in September.

[Letsbereal]

Inflation driven up by utility price rise
15 October 2011, by Liam Halligan (The Telegraph)
http://www.telegraph.co.uk/finance/comment/8829493/Putting-an-end-to-the-euro-would-be-better-than-yet-another-bail-out.html

Rising gas and electricity bills are expected to drive inflation up to close to 5% this week, heaping further pressure on British household finances.

[Letsbereal]

It’s stagflation stup! http://en.wikipedia.org/wiki/Stagflation

Stagflation: In economics, stagflation is a situation in which the inflation rate is high and the economic growth rate slows down and unemployment remains steadily high.

Jim Rogers Sees Devastating Stagflation, Would Quit If He Was A Bond Portfolio Manager
14 October 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/jim-rogers-sees-devastating-stagflation-would-quit-if-he-was-bond-portfolio-manager

[Letsbereal]

German Sept. Inflation Revised Up
17 October 2011, (RTTNews)
http://www.rttnews.com/Content/AllEconomicNews.aspx?ID=1732813

German inflation, as measured by the harmonized index of consumer prices, rose more than estimated in the preliminary report in September, the Federal Statistical Office said Thursday.

Inflation rose to 2.9% in September compared to 2.8% reported initially.

This was the highest rate since September 2008 and followed a a rate of inflation of 2.5% in August.

On a monthly basis, the index advanced 0.2%, faster than the 0.1% increase reported previously.

The consumer price index rose 2.6% year-on-year in September and was up 0.1% on a monthly basis.

This matched the preliminary estimates.

[Letsbereal]

U.S. wholesale prices surge in September - Gasoline, vegetables propel 0.8% increase last month
18 October 2011, by Jeffry Bartash - Washington (MarketWatch)
http://www.marketwatch.com/story/us-wholesale-prices-surge-in-september-2011-10-18

U.S. wholesale prices rose sharply in September as the cost of gasoline and vegetables spiked, the government reported Tuesday.

The producer price index rose a seasonally adjusted 0.8% last month to mark the biggest increase since April, the Labor Department said.

Higher wholesale prices were driven by a 2.3% increase in energy costs and a 0.6% rise in food costs.

----

The consumer price index is up 3.8% over the 12 months ended in August, outstripping the increase in worker wages over the same span.

The result: many families have had to make do with less. That’s contributed to a weaker U.S. economy.

Gas, vegetables lead way

Although oil prices fell in September, the cost of gasoline actually rose.

Higher gas prices accounted for nearly 70% of the increase in energy costs last month.

The increase in food prices was propelled by a 10% jump in the cost of fresh and dry vegetables, the government said.

That one category accounted for more than 80% of the increase in food costs last month.

Over the past 12 months, wholesale prices have climbed 6.9%.

That’s lower than the most recent peak of 7.2% in July, however. During that span energy costs have surged 18.4% and food costs have shot up 8.0%.

Omitting food and energy, wholesale prices have risen a more modest 2.5% in the past year.

In September, the 0.2% increase in the core rate was spurred by higher costs for light trucks and household detergents, which experienced the biggest one-month price increase since 1947.

Meanwhile, the price index for intermediate goods, such as the cloth used to make clothes or stamped metal parts used in motors, rose 0.6% last month.

Excluding food and energy, core intermediate prices edged up 0.2%.

Crude prices — the cost of raw materials — increased 2.8% in September, the government’s data showed.

Last week, the Labor Department reported imported prices rose 0.3% on the month and have advanced 13.4% over the past year.

[Letsbereal]

U.K. Sep. annual CPI rises to 5.2%, matches record
18 October 2011, by William L. Watts - Frankfurt (MarketWatch)
http://www.marketwatch.com/story/uk-sep-annual-cpi-rises-to-52-matches-record-2011-10-18

Consumer prices in Britain rose 5.2% in September compared to the same month last year, up from a 4.5% annual rate in August and matching a record set in September 2008, the U.K. Office for National Statistics reported Tuesday.

Monthly inflation rose 0.6% in September. Economists had forecast a 0.4% monthly rise and a 4.9% annual figure.

Gas and electricity charges were the largest driver in the annual inflation increase, the ONS said.

The inflation rate far exceeds the Bank of England's 2% annual inflation target.

BOE policy makers, however, last month restarted the central bank's quantitative easing program amid expectations inflation will fall back sharply in coming months.

[Letsbereal]

How Bill Gates is betting on inflation - Microsoft tycoon is investing in little-known inflation funds
18 October 2011, by Brett Arends - Boston (MarketWatch)
http://www.marketwatch.com/story/how-bill-gates-is-betting-on-inflation-2011-10-18

If you’re retired, or nearly retired, you probably want three things from your investments: Safety of principal, a reasonable rate of interest, and some security against the risks of inflation down the road.

Good luck with that. Developments in the financial markets, and the Federal Reserve’s policies, have driven down interest rates and closed off most of your options.

What can you do?

[Letsbereal]

U.S. consumer prices up 0.3% in September - Social Security benefits to increase 3.6% in 2012
19 October 2011, by Jeffry Bartash (MarketWatch)
http://www.marketwatch.com/story/us-consumer-prices-up-03-in-september-2011-10-19

Consumer prices rose again in September as Americans paid more for gasoline and a wide variety of groceries, the government reported Wednesday.

The Labor Department said the consumer price index rose a seasonally adjusted 0.3% last month, pushing the increase over the past 12 months up to 3.9% from 3.8% in August.

[Letsbereal]

Cleveland Fed price gauge rises 0.2% in September
19 October 2011, by Jeffry Bartash - Washington (MarketWatch)
http://www.marketwatch.com/story/cleveland-fed-price-gauge-rises-02-in-september-2011-10-19

The Cleveland Federal Reserve on Wednesday said its trimmed-mean consumer price index rose 0.2% in September.

The trimmed-mean CPI is seen by some economists as a better measure of underlying inflation than the Labor Department's so-called core rate.

The trimmed-mean CPI has risen at an annual rate of 2.5% in the past 12 months - higher than the 2.0% rate recorded by the core CPI.

The trimmed-mean CPI does not exclude food and energy like the Labor data, instead subtracting the most volatile categories in each monthly report.

[Letsbereal]

Canada's Inflation Unexpectedly Accelerates In September
21 October 2011, (RTTNews)
http://www.rttnews.com/Content/AllEconomicNews.aspx?Node=B2&Id=1739194

Consumer prices in Canada advanced more than estimated in the month of September, led by higher prices for gasoline and food.

The consumer price index increased 3.2% in September from a year earlier, compared with an August pace of 3.1% and a May peak of 3.7%, according to Statistics Canada.

This follows a 3.1% increase posted in August.

Economists were expecting a reading of 3.1%.

Excluding food and energy, the index increased 1.9% year-over-year in September, following a 1.5% advance the month before.

The core inflation rate, which excludes eight volatile items such as gasoline, accelerated to 2.2%, up from August's 1.9% pace to reach the fastest rate since December 2008.

Economists forecast 2% core inflation.

Meanwhile, the Bank of Canada's core index advanced 2.2% year-over-year in September, the largest gain since December 2008.

The increase follows a 1.9% rise in August.

[Letsbereal]

China central-bank paper: Inflation still a danger
23 October 2011, by China Bureau - Beijing (MarketWatch)
http://www.marketwatch.com/story/china-central-bank-paper-inflation-still-a-danger-2011-10-23

China still doesn't need to significantly loosen economic policy as inflation pressures remain relatively large, a newspaper backed by the country's central bank argued Monday.

The current slowdown in economic growth is welcome as it helps reduce inflation pressures and also helps achieve long-term objectives such as the structural reform of the economy, the Financial News said in an article.

"We should look optimistically at the current stable cooling of the economy," the article said.

Under a situation where the economy is not experiencing any large fluctuations, policy should be kept stable overall, the article said.

Newspaper website: http://www.financialnews.com.cn

[Letsbereal]

Philippine Central Bank Forecasts 4.5%-5.4% Inflation For October
28 October 2011, (RTT News)
http://www.rttnews.com/Content/AllEconomicNews.aspx?Id=1745226&SimRec=1&Node=B2

Philippine inflation for October is seen between 4.5% and 5.4%, central bank governor Amando Tetangco reportedly said in a text message on Friday.

In September, inflation rose to 4.8% from 4.7% in August.

Inflation could be higher than a month ago due to a rise in food prices, reflecting recent storms, the central banker said.

However, the impact of the typhoons on inflation is set to be temporary.

The Bangko Sentral ng Pilipinas expects inflation to remain manageable and to moderate towards the end of the year.

[Letsbereal]

China Manufacturing PMI Rises In October
23 October 2011, (RTTNews)
http://www.rttnews.com/Content/AllEconomicNews.aspx?ID=1739784

China's manufacturing activity expanded in October, flash survey results from Markit Economics showed Monday.

The manufacturing purchasing managers' index rose to 51.1 in October from 49.9 in the previous month.

A PMI reading above 50 indicates expansion of the sector, while a score below 50 suggests contraction.

China manufacturing output index rose to 51.7 during the month from 50.3 in September. Iinput cost inflation eased in October, the survey showed.

[Letsbereal]

Eurozone Oct. Inflation Stays At 3%
31 October 2011, (RTTNews)
http://www.rttnews.com/Content/AllEconomicNews.aspx?Node=B2&Id=1746741

Eurozone annual inflation remained stable at a 35-month high in October, flash estimate from the Eurostat showed Monday.

Annual inflation stayed at 3%, while economists' were expecting it to fall to 2.9%.

Inflation has been staying above the target of 'below, but close to 2%' since December 2010.

The statistical office is set to publish the final data on November 16.


Italian Inflation Rises Unexpectedly In October
31 October 2011, (RTTNews)
http://www.rttnews.com/Content/EuropeanEconomicNews.aspx?Node=B2&Id=1746764

[Letsbereal]

Australian inflation up 0.1% in October: survey
30 October 2011, by Sarah Turner - Sydney (MarketWatch)
http://www.marketwatch.com/story/australian-inflation-up-01-in-ocotober-survey-2011-10-30

A monthly gauge of Australian inflation rose 0.1% in October, according to a survey out Monday.

The TD Securities - Melbourne Institute gauge showed that inflation rose 2.6% on an annual basis.

[Letsbereal]

S. Korea government: Nov. inflation to accelerate
31 October 2011, by Se Young - Seoul (MarketWatch)
http://www.marketwatch.com/story/s-korea-government-nov-inflation-to-accelerate-2011-10-31

South Korea's Ministry of Strategy and Finance on Tuesday said it expects higher inflation in November compared with October, citing factors like a low base of comparison and import price volatility.

The ministry, in a statement, said increased public utility rates in various parts of the country will also lift inflation, though it said stabilizing food product supplies and lower telecommunications tariffs will help offset some of the upward price pressure.

October's consumer price index rose by 3.9% from a year earlier, marking the first time this year that the index fell within the Bank of Korea's annual 2%-4% target band for the year.