Inflation

(Newser) - Venezuelan President Hugo Chavez has rung in 2008 by shifting focus from instituting his broad vision for a revolutionary socialist state to more concrete problems such as battling crime, cleaning up litter-filled streets, and curbing staggering inflation, Reuters reports. Chavez's change in direction comes after voters failed in December to sign on to his plan to overhaul the country's constitution and after his botched attempt to free hostages in Colombia. More »

(Newser) - Fed officials will consider deeper rate cuts and a "substantial further easing of policy" if the turmoil in the credit and housing markets continues, according to minutes of last month's meeting. Officials displayed surprise at the extent of the housing crisis and acknowledged that market strains "could persist for quite some time," the Wall Street Journal reports. More »

(Newser) - The Dow fell 214.11 to 13,050.71 today, giving 2008 its first record: biggest point drop to start a year. Climbing commodity prices and poor manufacturing readings led the sharp 1.7% decline, and spiking crude oil futures sealed the bearish day. One strategist fretted over the Institute of Supply Management’s weakest manufacturing figures in four years, warning of “a slowdown in economic activity.” More »

(Newser) - Despite the yuan's continued appreciation against the dollar this year, at nearly 7%—double its growth in 2006—critics say the currency needs to adjust even higher to balance China's trade surplus, reports the Wall Street Journal. In the US, China’s economic strength has become a standard concern on the presidential campaign trail as candidates decry Bejiing’s currency manipulation. More »

(Newser) - Skyrocketing inflation in Iran is sparking criticism of President Mahmoud Ahmadinejad—even from within his own conservative party, the AP reports. Prices for food and homes have surged in recent months. Ahmadinejad, who ran in 2005 on promises to use oil revenue to boost the economy, blames his predecessors for the country's economic woes. The argument, however, isn't washing. More »

(Newser) - A slowing US economy and rising oil production will lower the price of crude to between $80 and $85 a barrel in 2008, predicts the Christian Science Monitor . While still higher than the $71 average for 2007, it’s a drop from current prices near $93. Lower prices could ease inflation worries in the US, experts say. More »

(Newser) - Consumer spending grew 1.1% in November, its biggest rise since July 2005. The better-than-predicted figure accompanied a revised 0.4% October gain, adjusted from 0.2%. Taken together, the numbers “postpone fears of a recession at least until next year,” said one economist. Jobs numbers and salaries were up, Bloomberg reports, potentially staving off a spending collapse. More »

(Newser) - The market was up and down all day today as investors divided on whether to applaud cash injections and welcome good earnings reports or fret over bad housing numbers and inflation concerns. The Dow ultimately climbed 65.27 to 13,232.47, the Nasdaq added 21.57 to 2,596.03 and the S&P tacked on 9.08 to 1,454.98. More »

(Newser) - Expect another surge in the cost of breakfast cereal: The benchmark price for wheat rose above $10 a bushel for the first time today, further fueling the inflation in global food costs that kicked in last summer. Benchmark prices for rice futures also hit a new high, and corn and soybeans hit 11- and 34-year peaks, respectively, the Financial Times reports. More »