Rising prices beat down consumer spending in June

WASHINGTON - Consumer spending, after adjusting for inflation, fell in June as shoppers were hit with the biggest increase in prices in nearly three decades.

The Commerce Department reported Monday that consumer spending dipped by 0.2 percent in June, after removing the effects of higher prices, the poorest showing since a similar drop in February. The higher prices reflected a big surge in gasoline costs and helped to drive an inflation gauge tied to consumer spending up by 0.8 percent in June, the biggest increase since a 1 percent rise in February 1981.The big rise in inflation ate up a part of the billions of dollars in stimulus payments delivered during the month. Personal incomes rose by a tiny 0.1 percent in June following a giant 1.8 percent increase in May.Stocks declined in early trading as investors fretted about what rising prices would do to consumer spending. The Dow Jones industrial average fell 63.02, or 0.56 percent, to 11,263.30 in early trading.In other economic news, the Commerce Department reported that orders to U.S. factories shot up at the fastest pace in six months in June, reflecting big increases in petroleum prices and heavy demand for military equipment.

Yearly euro inflation at record high of 4.1%

Yearly inflation in the 15 euro nations rose to a record high of 4.1 percent in July, the EU statistical agency Eurostat reported Thursday.

Prices have not climbed as fast since inflation records started in 1996 for the countries that eventually formed the euro.Soaring fuel and food prices are Europe's biggest economic problem, eating into household spending -- one of the engines of economic growth -- as people steer away from major purchases and luxury goods.Accelerating prices and signs that growth is stalling create a major dilemma for the European Central Bank, which acted last month to cool inflation by hiking borrowing costs for the first time in a year.But the bank may have to hold back from more interest rate increases as the European economy stumbles and companies slash staff.Eurostat reported that the jobless rate in the 15 countries that share the euro had risen to 7.3 percent in May and June from a year ago. It revised upward an earlier estimate of 7.2 percent for May as unemployment worsened from a record low it hit in December 2007.

Australia to give aid to Myanmar

SINGAPORE - Australia announced Wednesday an extra $29 million in aid for survivors of Myanmar's May cyclone, but pressed its recalcitrant military junta to democratize quickly and respect human rights.
Australian Foreign Minister Stephen Smith said he informed his Myanmar counterpart, Nyan Win, of the aid during a meeting Tuesday on the sidelines of an annual security meeting of the Association of Southeast Asian Nations and its Asian and Western dialogue partners in Singapore.Smith also called on the junta to ensure that general elections in 2010 will be free and fair and will allow the political opposition, including long detained pro-democracy icon Aung San Suu Kyi, to participate."We want to see Myanmar return to respect for human rights, respect for the rule of law and we want to see democracy return to Myanmar," Smith said he told Win. People walk past flooded houses in Schineni, northern Romania, Monday, July 28, 2008. Severe weather caused heavy flooding in Germany, Ukraine and Romania on Saturday and Sunday, forcing thousands to evacuate their flooded homes. In northern Romania, five people died in flooding and heavy rain in areas bordering Ukraine, and power outages affected around 20,000 people.

Child molester hasn't served single day of 43-year prison term

For nearly two years, the South Florida middle school art teacher forced the boy to have sex in a classroom supply closet. Sometimes, Aaron Mohanlal would call in sick to work, take the boy to his home for sex and drop the seventh-grader back off at school at the end of the day. To keep the abuse secret, Mohanlal bought the 13-year-old a cell phone and created nicknames for their genitalia. When police arrested him, the teacher was caught on hidden video trying to destroy letters threatening the boy if he ever told. Last summer, a Broward County jury convicted Mohanlal of 13 counts, including child abuse, molestation and lewd battery, and a judge sentenced him to 43 years. But a year later, Mohanlal has yet to spend a day in prison. "I can't understand why he isn't behind bars," said the victim, now 18. The network is not disclosing his name because it doesn't identify sexual assault victims. "I want to move on with my life. I'm trying to graduate high school and forget about this," he said. "I try not to think about it, but it's hard, because all I can think about is, what if he's out there around other kids?"

Former Stepfather of Dead Vermont Girl Indicted on Child Porn Charges

SAN ANTONIO — The former stepfather of a 12-year-old Vermont girl found dead earlier this month was indicted Wednesday on child pornography charges.

A grand jury indicted Raymond Gagnon on charges of transporting child pornography in April 2007 and possessing a computer containing child pornography on July 1, the U.S. Attorney's Office said in a release.The San Antonio man is the former stepfather of Brooke Bennett, who went missing June 25 and was found a week later buried in Randolph, Vt.

Airlines Face The Abyss

A recent report predicts several major U.S. airlines will be forced to liquidate in the.

American Airlines jets line up a gates at Chicago's O'Hare International Airport Wednesday, June 4, 2008 in Chicago. American Airlines will cut back flying later this year at many airports, including hubs in Dallas and Chicago, as it attempts to cope with record high fuel prices. The nation's largest carrier gave more details Wednesday about capacity reductions it announced last month. American said it will reduce departures at its Chicago O'Hare Airport hub by 28 flights and sister airline American Eagle would cut 34 flights, beginning in September.e coming months.