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...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... The core rate of inflation, meanwhile, rose a smaller 0.1% in September, keeping its 12-month increase at 2.0%. It was the smallest increase since March. Economists surveyed by MarketWatch had forecast consumer price index, which tracks inflation at the retail level, to rise by 0.3% in September. The core rate was expected to increase by 0.2%

The 10 Worst Hyper-Inflation Horror-Stories Of The Past Century Mamta Badkar Oct. 18, 2011, 9:36 AM Inflation numbers have been heating up. U.S. PPI just came in higher than expected at 0.8%. UK's CPI also jumped. In India and China, food inflation has been stubbornly high. Hyperinflation is more of an extreme. Over the weekend, John Mauldin wrote that he doesn't expect hyperinflation in the U.S. because the Fed can print loads of money without bringing about inflation. But a crucial aspect of hyperinflation is mounting deficits that are financed by printing money as he explains. When prices start jumping...

<p>The number is out, and it's HOT!</p> <p>PPI hs jumped 0.8%, well above the 0.2% analysts had expected.</p> <p>Core PPI, which excludes food and energy, was only up 0.2%, which is still above the 0.1% that analysts had expected.</p> <p>The culprit? Blame food and energy.</p>

The world's leading economies pressed Europe on Saturday to act decisively within eight days to resolve the eurozone's sovereign debt crisis which is endangering the world economy. In unusually direct language, finance ministers and central bankers of the Group of 20 major economies said they expected an October 23 European Union summit to "decisively address the current challenges through a comprehensive plan". … The communique urged the euro zone "to maximize the impact of the EFSF (bailout fund) in order to address contagion". EU officials said the most likely option was to use the 440 billion euro fund to offer...

<p>Is Europe's planned programme of banking recapitalisations going to work?</p> <p>It depends how it is done, but the omens aren't good. The message from bankers at the Association for Financial Markets in Europe (AFME) annual dinner in London this week was a concerning one.</p>

The head of the world's biggest food company has warned rising food prices could trigger food revolts like they did in 2008. Swiss giant Nestle Chairman Peter Brabeck told an Austrian newspaper rising prices were a product of a growing world population, the rise of a middle class in countries like India that is keen to eat more meat, and the increasing demand for water. Comparing the situation to 2008 when food riots took place in many countries Mr Brabeck said: 'The situation is similar. This has become the new reality.' The riots three years ago were triggered when the...

Warning U.S. HyperInflation Ahead Economics / HyperInflation Oct 09, 2011 - 06:20 AM By: Seth Barani Money Supply M2 has expanded at Warp-9 within the past few months, based on Federal Reserve Data released on Sep.30th. In fact, the ratio of M2 to M1 has set a World Record, exponentially growing to over 5:1 (M2 is near $9.6 Trillion, over 12% growth this year so far, projected to show 15% growth in one year, while M1 has remained constant near $2 Trillion.) Chart below shows the growth of M2 in 2011: The daily price chart of Gold is shown next....

In less than one hour on Tuesday, the U.S. stock market surged by 4 percent -- for no apparent reason. The last hour of trading was the most volatile final hour in two months -- and it occurred at a speed that frightens many, from experienced hedge-fund managers to mom-and-pop investors.

Yes, this again. There are fewer billboards this time, but the people who brought you the popular Rapture "scare" of May 2011 are back with a more subdued sequel titled "Wait, Wait, We Meant October." You may recall the excitement earlier this year when Grand Rapids received a visit from the followers of Family Radio Worldwide, a California-based Christian group led by 89-year-old Harold Camping, who were traveling the country to loudly and colorfully proclaim Judgment Day's imminence. It didn't happen. OR DID IT!? The conspicuous lack of a world-ending earthquake left Camping and his followers scrambling to explain why...

Why The Inflationists PROBABLY Have It Wrong, For Now Economics / Deflation Oct 03, 2011 - 01:27 PM By: David Haas Many people are trying – with increasing desperation – to discern the future and plan correctly for the economic environment we’re most likely to find ourselves experiencing. My continued bets have been that deflation will prevail, at least in the early years of the great collapse, and nothing has yet occurred that changes my view. To further advance your personal understanding of the powerful forces (people) at work in the hidden halls of high finance, here is an excellent...

Income fell a seasonally adjusted 0.1% in August, which was the first decline since October 2009... Consumer spending increased a seasonally adjusted 0.2% in August, down from a revised 0.7% gain in July...Economists surveyed by MarketWatch expected a flat reading in income and a 0.1% gain in spending... The core personal consumption expenditure price index was up 0.1% in August, below economist expectations of a 0.2% gain

Less than 10 days after the Federal Reserve announced a reprise of the “Operation Twist“ strategy it first used half a century ago, mortgage rates are at all-time lows. Operation Twist is the Fed’s plan to squeeze the long end of the yield curve by buying long-term Treasurys instead of short-term ones — in other words, increasing demand and lowering the rates for long-term borrowing.

For several years, a heated debate has raged among economists and policymakers about whether we face a serious risk of inflation. That debate has focused largely on the Federal Reserve — especially on whether the Fed has been too aggressive in increasing the money supply, whether it has kept interest rates too low, and whether it can be relied on to reverse course if signs of inflation emerge. But these questions miss a grave danger. As a result of the federal government's enormous debt and deficits, substantial inflation could break out in America in the next few years. If people...

<p>Nothing has represented the rise of the hyperinflation meme more than the price of silver has over the last few years. At every twist in the market the rise in precious metals and silver in particular, has been used as the cornerstone of evidence of “money printing”, debt monetization and raging inflation that was guaranteed to ravage the US economy.</p>

If the drought wasn’t enough for farmers and ranchers to struggle with, now they are facing a growing threat. Thieves are targeting pastures and barns for suddenly valuable hay bales. It’s the nature of ranchers like James Lockridge to give you something if you need it badly enough. “Come up and ask us. Surely we can work something out.” Mitch Waters runs a feed store that’s such a fixture, people drive 50 miles to shop there. “Got out of school in 77 and been here ever since.” But now both men, are putting their livelihoods behind locks. Signs are posted,...

I suggested in my last column that using the monetary aggregates which have increased the most in recent years would point towards a gold price in the mid $1700s per ounce. Using other money supply measures which have not expanded as much would point towards gold prices around $1400 per ounce. On the other hand, it seems likely that money supply measures will, in fact, increase going forward. After all, the general mood in the country is malaise, and the head of the central bank is a Keynesian. With unemployment rates north of 9% and GDP growth rates south of...

Food Inflation Reaches "Quite Concerning" Levels In Houston Gus Lubin Sep. 20, 2011, 8:20 AM The rate of food inflation is "quite concerning," according to a Jefferies survey from Houston. This could lead to pressure on manufacturers and retailers: Our pricing survey in Houston once again showed further price increases coming through to retail. Our average basket is now up over 9% in about a year and increased +1.5% since our last visit to the market in July. Clearly, we are now seeing very sizable price movements in our basket and, even in the robust economic climate in Houston, the...

… Beef, veal, pork, eggs and such dairy products as butter, milk and cheese have seen the biggest increases in the past year, said Richard Volpe, an economist with the U.S. Department of Agriculture. The price of groceries rose 5.4 percent from July 2010 to this July, according to the USDA's latest report. ... Now the rising cost of energy, the weaker dollar and growing global food demand are driving the price. Beef and veal prices are expected to increase as much as 8 percent this year, with pork projected to go up as much as 7.5 percent. Beef prices...

China risks hard landing as global woes spread China's carefully-managed soft landing is turning harder by the day, threatening to deflate the torrid credit bubble of the past three years. Ambrose Evans-Pritchard By Ambrose Evans-Pritchard, In Dalian 6:23PM BST 15 Sep 2011 "There is a large potential risk," said Zhu Min, the deputy managing director of the International Monetary Fund and a former Chinese official. Mr Zhu said China had doubled the loan ratio from below 100pc of GDP before the Lehman crisis to roughly 200pc today. The danger is that this excess could start to unwind just as the...

A Long-Term Look At Inflation By Doug Short September 15, 2011 The September 2011 Consumer Price Index for Urban Consumers (CPI-U) released today puts the July year-over-year inflation rate at 3.77%, which is fractionally below the 3.96% average since the end of World War II. For a comparison of headline inflation with core inflation, which is based on the CPI excluding food and energy, see this monthly feature. For better understanding of how CPI is measured and how it impacts your household, see my Inside Look at CPI components. For an even closer look at how the components are behaving,...