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Shoppers will face larger bills 

When William Lapp, of US-based consultancy Advanced Economic Solutions, took the podium at the annual US Department of Agriculture conference, the sentiment was already bullish for agricultural commodities boosted by demand from the biofuels industry and emerging countries.

He added a twist – that rising agricultural raw material prices would translate this year into sharply higher food inflation.

High food prices may force aid rationing - Feb-24Demand for wheat puts India at risk - Feb-24Tea prices set to soar - Feb-18Editorial Comment: Kenya breathes out - Feb-18Wheat prices surge to new high - Feb-17Record cereal prices burden poor countries - Feb-14“I hope you enjoy your meal,” Mr Lapp told delegates during a luncheon. “It is the cheapest one you are going to have at this forum for a while.”

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U.S. Gasoline Pump Prices Rise to $3.10, Lundberg Survey Shows

The average price of regular gasoline at the pump in the U.S. rose 16 cents in the past two weeks to $3.10 a gallon, according to oil industry analyst Trilby Lundberg's survey of 7,000 filling stations nationwide.

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Who Will Win Major Airplane Order?

Washington to decide this week in tanker contest

The government is due to pick the winner this week in a huge warplane competition that pits No. 2 U.S. defense contractor Boeing Co against a team made of No. 3 Northrop Grumman Corp and its European partner, Airbus parent EADS.

Air Force order could create 3,800 jobs in Kansas

If Boeing lands the contract, its Wichita facility would house a finishing center to assemble and test the tankers. That would create 300 to 500 jobs.

The contract also would create another 500 jobs with local suppliers, including Spirit AeroSystems, where workers would build the KC-767’s forward section.

Overall, the economic impact to Kansas will be about 3,800 jobs and $145 million a year, U.S. Sen. Pat Roberts and U.S. Rep. Todd Tiahrt said last month.

The initial contract for 179 tankers is expected to be worth about $40 billion over 10 to 15 years. With possible future orders, the contract could top $100 billion over 30 years.

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Warren Buffett’s test of health

FOR someone who’s frequently and accurately cited as one of the world’s greatest investors and hailed as a guru by millions, Warren Buffett hasn’t exactly been splashing his cash about over the past few years.

But just as the markets have taken a turn for the worse, and everyone is screaming “sell”, Buffett’s been dipping into his pockets and making headlines with some new purchases. And his track record suggests it’s well worth paying attention to what he’s buying. Buffett has beaten the S&P 500 index (America’s main benchmark stock index) by almost 15% each year between 1976 and 2006.

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US recession danger as house prices tumble

But even I was spooked by the minutes of the Federal Reserve's most recent policy meeting, held last month. For the US central bank not only cut this year's growth forecast but, at the same time, raised its estimates for 2008 inflation.

Fed policy-makers predict the US will grow only 1.5 per cent this year - down from the 2.2 per cent forecast they made back in October. That's certainly not consistent with "recession" - defined as at least two successive quarters of negative growth - for two reasons.

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Dallas Fed chief not afraid to buck traditional views on economy

With consumer prices climbing at the fastest rate in years, even as an economic downturn looms, he worries inflation will cut into the dollar's buying power.

Dallas Fed president Richard Fisher, who's distinguished himself as an independent thinker, has argued that interest rates should not be cut despite the economic slowdown. That concern led Mr. Fisher to argue at a recent Fed meeting that interest rates should not be cut despite the slowdown. He voted that conviction – and lost.

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Recession looms despite Fed's determined efforts

Last week, the central bank found itself facing hints of a problem the United States has not seen in decades: stagflation, the mix of slumping growth, sharp spikes in o il and food prices and a rising pace of overall inflation.

The Labor Department reported that consumer prices jumped 4.3 percent in January, compared with one year earlier. That was the biggest jump in more than two years. Even after excluding the volatile prices for food and energy, inflation was up 2.5 percent - well above the central bank's unofficial target of 1 percent to 2 percent.

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Bernanke to tell Congress has eyes on growth risks

* What: Federal Reserve Chairman Ben Bernanke delivers semi-annual economic outlook testimony to Congress

* When: Wednesday, February 27, at 10 a.m. EST. and Thursday, February 28, at 10 a.m. EST.

Federal Reserve Chairman Ben Bernanke will deploy his most reassuring bedside manner in congressional testimony on Wednesday and Thursday to explain how the U.S. central bank, which has already cut interest rates 2-1/4 percentage points since mid-September, can trim them further to prevent recession without letting inflation get out of hand.