Does Inflation Matter Anywhere Else But the United States?

Commodities are on a tear. I’ve talked a lot about commodities in the past year or two and in that time period they have continued to push higher.

We are now seeing the results of those increased prices in the inflation rates across the globe.

Chile has a 6% inflation rate.

Australia is now over 4%.

China saw an 18% rise in food prices in January and a 7.1% overall inflation rate (mainly due to the nasty snowstorms that shut down most of the country.)

Poland’s inflation rate was 4.3% in January and economists expect it to remain above 4% through at least the first three quarters of the year (their growth rate, by the way, was 6.5% in 2007 and was expected to “slow” to 5.5% in 2008.) Despite the slowing growth rate, inflation was expected to remain stubbornly high.

Why?

Oh, $100 crude. $14 soybeans. $930 an ounce gold. $17.50 an ounce silver. Sugar prices that are spiking. More expensive corn. Record high wheat.

These are the things that people need the world over.

Apparently, in the United States, there is no inflation because our houses are declining. Our flat-screen tvs are cheaper. They just reduced the price on the iPhone.

Food is skyrocketing? Ho-hum. Who eats anyway?

I don’t see how there is a global economy and how every other country can experience inflation but the United States does not.

It’s impossible.

There’s only one direction interest rates are headed: and it’s up. Financial crisis and credit crisis be d*mned.

The inflation genie is out of the bottle. Question is: how much havoc will he play before he is stuffed back in again?