When it comes to predicting the rate of inflation, professional economists might tell consumers, "Your guess is as good as mine."

Federal Reserve Governor Frederic Mishkin said the U.S. Federal Reserve could improve its communication and better affixes inflation, devoid of losing policy flexibility by agreeing on a goal for price stability. The Outgoing Federal Reserve Board Governor also warned against the high commodity prices, which he says, has driven inflation “above rates consistent with price stability.”

What Ben Bernanke is saying is that although the weak dollar is driving costs up and therefore inflation is rising, the Fed does not feel that they can raise the interest rates at this time, all bad news for seniors living on a fixed budget.

Steelmakers in China agreed to pay Rio Tinto up to 96.5% more for their iron ore supplies this year. This was on the heels of China's unexpected increase in gasoline and diesel prices by 17% on Friday.

A recent AARP study shows that 26% of people they surveyed were finding it more difficult to pay their mortgage or rent, and 66% found it more difficult to pay for food, gas and medicine.

The Wall Street Journal had an interesting editorial yesterday. They explained how the falling dollar is causing worldwide inflation and they urged that the Federal Reserve borrow money in order to drive up the US interest rate in order to slow that worldwide inflation. Here is their description of the world-wide problem:

In a speech delivered in San Francisco, Dallas Fed President Richard Fisher said the "I" word several times. Mr. Fisher said "If inflationary developments and, more important, inflation expectations continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic" economy.

Remarks by Dennis P. Lockhart, president and chief executive officer of the Federal Reserve Bank of Atlanta, delivered to the Southern Center for International Studies Young Professionals, May 17, 2008. Dennis Lockhart discusses the U.S. economy, inflation and the global economy.

Mortgage interest rates dropped as fears of inflation eased. Adjustable rate mortgages were helped the most. The Fed’s aggressive posture and track record for action (i.e. Bear Stearns, liquidity injections, rate cuts), and led by stability of the dollar and tamer-than-expected inflation data all helped the cause.

Zimbabwe's central bank, currently grappling with record-breaking inflation, has introduced a new high-denomination bank note of a quarter of a billion dollars,state television have said.

India's inflation rate, which jumped to a more than three-year high last month, is a "big concern" for the government as it heads towards a general election due by May 2009, Indian Finance Secretary Subba Rao said in Spain.

The economic figures are in, and America's GDP rose by 0.6% in the 1st quarter of 2008 (January-March). All praise to Ben Bernanke then as the Commerce Department announced slight growth in U.S. Economy?