INFLATION

The number of U.S. workers filing for jobless benefits fell only slightly last week, suggesting the unemployment rate will remain elevated even as recovery in the labor market becomes entrenched.

Although price pressures in the U.S. economy are currently muted, inflation could accelerate in the United States in the next three to five years, the world's biggest bond fund management company said on Thursday.

The number of U.S. workers filing for jobless benefits fell only slightly last week, highlighting the challenges facing the labor market, while import prices pointed to tame inflation, according to government data released on Thursday.

Although price pressures are currently muted, the United States will get an uptick of inflation over the medium term, the world's biggest bond fund management company said on Thursday.

Gold climbed to a second successive record high on Wednesday as investors bet that a proposed $1 trillion European rescue will either fail to prevent a worsening euro zone crisis or will stoke inflation.

After the initial surprise and shock generated by the Euro rescue mission worth $1 trillion, the ominous economic woes loomed large over the global markets and as a result the safe haven quotient of gold soared again and the yellow metals again started its upward journey with the prices jumping above $1,200 per ounce levels. Mostly the gold futures market across the globe witnessed the surge as investors were skeptical about the IMF-EU-sponsored bailout package for the Euro zone.

U.S. policy-makers must not wait too long to raise interest rates with inflation unlikely to stay at low levels as the economic recovery picks up steam, a top Federal Reserve official said on Tuesday.

Chinese annual inflation pushed up to an 18-month high in April and property prices rose at a record clip, showing that the government still has its work cut out to keep the world's third-largest economy from boiling over.

Chinese annual inflation pushed up to an 18-month high in April and property prices rose at a record clip, showing that the government still has its work cut out to keep the world's third-largest economy from boiling over.

China stands little chance of hitting the government's target of keeping inflation below 3 percent this year, a senior government economist said on Saturday.

U.S. employment grew at the fastest pace in four years in April as private sector businesses ramped up hiring, showing the labor market recovery gaining steam.

A surge in U.S. productivity slowed in the first quarter, hinting that employers may soon need to step up hiring after months of squeezing more output from a small pool of workers.

European sovereign debt woes are a risk to the improving U.S. economic outlook, St. Louis Federal Reserve Bank President James Bullard said on Thursday.

U.S. productivity grew solidly in the first quarter, although not as fast as in previous periods, and data also showed the number of U.S. workers filing claims for jobless aid fell slightly last week.

The economy is showing signs of improvement but the recovery still has a long way to go and ultra-low interest rates are still needed, a top Federal Reserve official said on Wednesday.

A Japanese ruling party panel called on the government and the Bank of Japan on Thursday to make utmost efforts to keep the yen at appropriate levels as part of efforts to pull the world's No.2 economy out of deflation.

* Rosengren argues ultra-low rates still needed * Hoenig urges hard leverage constraints * Plosser says regulators humbled by crisis

With bullion analysts predicting a rise in gold prices following the European crisis and the Chinese crackdown on realty, scrap gold sales are set to shoot up. Scarp gold sales are normally up at a time when the gold prices go up as several people rush in to book profits. In April, India witnessed a surge in sales of old gold jewellery after remaining more or less tepid since the beginning of the new year. A consumer who wishes to sell old jewellery to a scrap trader is a contributor to recycled...

Manufacturing, construction and consumer spending data on Monday all bode well for the economic recovery, with factories' activity growing at the fastest pace in nearly six years.

China on Sunday raised the proportion of deposits that lenders must keep in reserve at the central bank, another step in its months-old campaign to mop up excess cash in the economy at a time when inflation is on the rise.

U.S. manufacturing, construction and consumer spending data on Monday all bode well for the economic recovery, with factories' activity growing at the fastest pace in nearly six years.