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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: chartseer who wrote (100192)	2/20/2011 7:50:19 AM
From: lorne	3 Recommendations Read Replies (2) \| Respond to of 224718

Inflation makes comeback as prices rise for food, fuel By Patrice Hill The Washington Times Thursday, February 17, 2011 washingtontimes.com Inflation is making a quick comeback after touching the lowest levels in decades last fall. Fast-rising prices for food, fuel and other basic necessities, stoked by rapid growth in emerging countries, are coming home to American consumers despite reluctance by U.S. businesses to raise their prices. A report from the Labor Department on Thursday showed consumer prices rose by 0.4 percent in each of the past two months — or a 4 percent annual rate over the last quarter f fed by the biggest gains in food prices in two years and surging energy prices. The report also showed a broadening of price pressures as airlines jacked up their fares by an average of 2.2 percent to pass on the cost of higher fuel and retailers raised clothing prices by 1 percent to reflect the higher costs of cotton and other fabrics. While the 0.7 percent rise in the cost of food at home last month was not as dire as an 18 percent surge in food prices that helped send people into the streets in Egypt and other Middle Eastern countries, it poses a growing burden for U.S. consumers who are already contending with the highest gasoline prices ever seen at this time of year. “The surge in commodity prices is starting to feed through to the consumer,” said Harm Bandholz, an economist at Unicredit Markets. He predicted that prices will keep accelerating in coming months and nearly double the inflation rate to 2.75 percent by the middle of the year on the rising tide of commodity inflation. While economists had expected the surge in basic materials prices that started overseas to eventually reach U.S. shores, Mr. Bandholz said he was surprised at how quickly this prompted U.S. businesses to start passing on their costs to consumers. The so-called core rate of inflation, which excludes food and energy prices and includes things such as rent that usually rise slowly, accelerated from an all-time low annual rate of 0.6 percent in October to 1 percent in January. That swift move was startling to Mr. Bandholz, who called it “remarkable” even though “the level of the core rate is still very low.” “Moreover, the increase was broad-based,” he said, including increases in prices for nearly everything but cars and trucks