Australia's mining powerhouse rocked by explosion at gas plant

Island explosion could cripple iron ore and gold production of Western province, reports Peter Taylor

An explosion at a gas plant off the Australian coast has catapulted one of its powerhouse commodity-rich states into an energy crisis, casting a pall over the nation's economy.
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The state has lost a third of its gas supply after the explosion at Varanus, a small island 60 miles off the north-western coast, costing it hundreds of millions of dollars every week.

Nigerian attack closes oilfield

Oil company Royal Dutch Shell says it has temporarily stopped production at its
main offshore oilfield in Nigeria, following a militant attack.

The raid took place overnight on the Bonga oil platform about 120km (75 miles) off the coast of the Niger Delta, the company said.

Demand stays the same, supply goes down, guess what the results are?

And guess how oil affects all other supplies?

Mexico caps price of basic foods

Mexico's government is concerned about the impact of soaring food bills. Overall consumer price inflation was 4.95% over the past year, but food price inflation was far higher at 8%.

Last year, Mexicans took the streets in protest over a sharp rise in the price of tortillas, maize-based pancakes that are an important part of the national diet.

And what happens when prices spiral out of control? People turn into panicky, scared cattle. Moo. And that affects the entire world economy.

China and India lose their appeal for investors on inflation fears

The world's fund managers are pulling their money out of China and India at a record pace on mounting fears of inflation and are now more pessimistic about global equities than at any time in the past decade.

The latest survey of investors by Merrill Lynch shows that Europe has become the most unpopular region, while Britain is still trapped in the doldrums.

But the big surprise is the sudden change in view on the emerging powers of Asia, as overheating and spiralling oil costs spoil the boom.

"World growth is slowing and yet central banks might still have to tighten monetary policy, that is what is scaring people," said David Bowers, the organiser of the survey. The vast majority of fund managers think earnings forecasts have lost touch with reality.

Bank of England's Mervyn King warns wages will stagnate and house prices will fall

In his most sombre message yet, Mr King said families were being squeezed hard by higher electricity and food prices on the one hand and slowly-increasing wages on the other.

He told Alistair Darling and leading City dignitaries in London that the experience would be even tougher than the credit crunch, and warned that the "era of cheap mortgage finance... is over".

Mr King said: "This year our real take-home pay will rise at a slower pace than national productivity. Rising fuel, gas, electricity and food prices, mean that average real take-home pay will stagnate this year. It will not be an easy time, and I know that some families will find it particularly difficult."

So, if you're like me, and trying to eat heathfully on a tighter (though not fully stressed) budget, there's this.

Can Less Money Equal Better Eating?
Healthy Eating Need Not Be Expensive, Even in a Bad Economy

The rundown: swap out meat for eggs, prepared/instant foods for what you cook yourself, go with fresh or frozen vegetables.