From Bloomberg.com:

Rice, corn, gasoline (petrol and diesel), etc. - more inflation in food and energy.  Now we need to really watch the price indicies that exclude food and energy.  If these price increases flow into the other goods, we have a real problem!!  In the U.S. we call this STAGFLATION - a stagnant economy (or even recession) and inflation concurrently!

Rising food and fuel costs have triggered protests in countries around the world. Crude oil jumped as high as $112.21 a barrel today as a Department of Energy report showed petroleum inventories unexpectedly fell last week. Corn rose to a record $6.16 a bushel as stockpiles dropped more than anticipated.

Protests may spread as falling supplies caused by crop failures and greater use of grains for biofuels stoke inflation globally, the United Nations Food and Agriculture Organization said today. The World Bank says 33 countries from Mexico to Yemen may face social unrest because of surging food prices.

"We have seen riots around the world, and there's risk that these will spread because of rising prices in countries where 50 percent to 60 percent of incomes go to foods,'' FAO Director General Jacques Diouf said in New Delhi today. ``The problem is serious.''

Rice, Wheat Double

Rice and wheat prices have doubled in the past year. Global food prices jumped 57 percent in March, according to the FAO. Higher energy prices also will stoke inflation, analysts said.

"Demand around the world is not slowing down,'' said :S:d1">Zachary Oxman, a senior trader at Wisdom Financial Inc. in Newport Beach, California. "The world has proven that even with a slowdown in the U.S., there's still a huge demand for all commodities.''

HOLD ONTO YOUR SEATS, relax and enjoy the ride.  Stay tuned!