Amid a bounce back in manufacturing activity, surging commodity prices are leading to fears of inflationary forces. Those forces are real, but corporate profits -- and therefore, stock prices -- won't suffer too quickly. The pain for struggling Americans, though, could be rapid and severe.
Sugar prices hit three-decade highs of almost 36 cent a pound Wednesday due to the anticipated effects of the monstrous category 5 cyclone that just hit Australia, the world's third-largest sugar producer, which was already suffering from the effects of recent storms and floods.
Electronics retailer Best Buy has agreed to pay $399,000 to settle allegations that it advertised lower prices on its website, then charged customers higher prices at some of its stores.
Led by a jump in energy, producer prices rose 0.8% in November -- a gain that suggests policymakers may be winning their battle to avoid deflation. It's the straight monthly rise. However, minus energy and food increases, inflation pretty much vanishes.
Expect your T-shirts to get a little bit thinner next year -- and maybe a little more expensive. Apparel retailers are looking high and low for ways to keep from passing on too much of their own rising costs to consumers. The trick: Doing so without hurting quality.
Lower prices may sound nice, but deflation can wreck an economy with pay cuts, lower profits and falling stock prices.
Be prepared to pay more for your venti-sized extra-hot half-caff soy caramel macchiato at Starbucks starting soon. As the price of green Arabica coffee greens skyrockets, the company says it will raise prices for some of its more labor-intensive beverages.
The producer price index fell 0.5% in June, more than expected. Along with manufacturing data out Thursday, the price data give more support to analysts who are worried that deflation remains the biggest threat to the economy.
