Inflation trouble watch --

There is a growing focus on inflation around the world and it is interesting to keep tabs on the what is happening on the micro level not just with the reported inflation numbers. The effect of inflation is real. Recent stories this week:

• Diesel fuel - rising costs is causing shippers to sell rigs and export them. Small firms cannot make money if they do not run full loads.
• Cattle - Prices for meat is going up because feed and shipping costs have increased. Corn is up over $3 a bushel in the last year.
• Airfreight - The cost of fuel has caused airfreight to increase so much that less planes are running from the Far East.
• Dow Chemical - Announced across the board increases in products by up to 20%. The petrochemical and plastics prices are on the rise with oil prices over $125 a barrel.
• Russia will not invest internally in infra-structure because of high inflation, 7.5%.
  
• Large financing of public debt in Italy this year through inflation linked bonds, 18 bil euros.
  
• Hungary central banks sees risk to inflation target.
  
• Mexican restaurants increase prices 20%.
  
• Polish inflation above 3.5% target.
  
• Norway inflation above 2.5% target.
• Taiwan cuts producer tax to ease inflation. Chip maker suggests price rise
• South Africa core inflation at 10.2%