Inflation: 4 in Europe, 5 in the US

Global inflation shows few signs of abating.

It's not abating in Europe. From Eurostat:

Euro area annual inflation was 4.0% in June 2008, up from 3.7% in May. A year earlier the rate was 1.9%. Monthly inflation was 0.4% in June 2008.

EU annual inflation was 4.3% in June 2008, up from 4.0% in May. A year earlier the rate was 2.1%. Monthly inflation was 0.4% in June 2008.

And it's not abating in the US. From Bloomberg:

U.S. consumer prices surged 5 percent in the past year, the biggest jump since 1991, just as households struggled with falling home values and the credit crunch.

Spiraling expenses for food and fuel spurred the increase in June, the Labor Department said today in Washington. The cost of living rose 1.1 percent from May, more than forecast and the second-largest rise since 1982...

Excluding food and energy, so-called core costs climbed 0.3 percent in June from the previous month and 2.4 percent from a year before.

Other data on the US economy yesterday were mixed.

A separate report today said confidence among U.S. homebuilders dropped to 16 this month, a record low. Readings for current sales, expected sales and buyer traffic in the National Association of Homebuilders/Wells Fargo sentiment index also were at all-time lows...

The Fed said today that production at factories, mines and utilities increased 0.5 percent last month after dropping 0.2 percent in May. Capacity utilization, which measures the proportion of plants in use, rose to 79.9 percent from 79.6 percent...

Today's figures also showed wages decreased 0.9 percent in June after adjusting for inflation, the biggest drop since September 2005, and were down 2.4 percent over the last 12 months. The decline in buying power is one reason economists forecast consumer spending will slow.