@Jabulani:

I think you're right about the key sources of rising prices just now: people in rich countries buying all the oil they want (even as the supply of oil has stopped growing), together with the attempt to turn food into fuel (ethanol and bio-diesel) so that we can keep to our motoring lifestyle.

Guest is right, though, that the rising money supply is what makes money less valuable. That's what's made the value of the dollar collapse.

The thing is, we're seeing all these forces active at once, which makes it really hard to tell how much of the rise in fuel and food costs is due to inflation (the money being less valuable) and how much is due to suppy and demand and lifestyle issues.

In a few years we'll be able to look back and figure out how much was one thing and how much was another. In the meantime, you've got the right prescription--walk, bicycle, and take the bus more; buy less.