WASHINGTON - March 17, 2011 - U.S. housing starts posted their biggest decline in 27 years in February, while building permits dropped to their lowest level on record, suggesting the beleaguered real estate sector has yet to rebound from its deepest slump in modern history.

Groundbreaking on new construction dropped 22.5% last month to an annual rate of 479,000 units, according to Commerce Department data released on Wednesday. This was just above a record low set in April 2009 and way below the estimates of economists, who had been looking for a smaller drop to 570,000.

OSLO, Norway - March 17, 2011 - Is there a march to raise interest rates in the face of the disaster in Japan? Some investors are starting to doubt it, but the threat of inflation means most rate hikes are likely to go ahead.

Before the earthquake, central banks around the world were gearing up to tighten policy. Now markets are scaling back their pricing of future rate rises, as it becomes clear the damage to Japan's economy could be worse than originally thought.

WASHINGTON - March 17, 2011 - Amerikans are noticing higher prices at the grocery store, and it's about to get worse.

Food prices at the wholesale level rose last month by the most in 36 years. Cold weather accounted for most of it, forcing stores and restaurants to pay more for green peppers, lettuce and other vegetables, but meat and dairy prices surged, too.

WASHINGTON - March 16, 2011 - Builders broke ground last month on the fewest homes in nearly two years, a reflection of declines in home prices and diminished demand that has made it difficult for them to compete.

Home construction plunged 22.5% percent in February from January to a seasonally adjusted 479,000 homes, the Commerce Department said Wednesday. It was the lowest level since April 2009 and the second lowest on record, dating back more than 50 years.

WASHINGTON - March 16, 2011 - Higher energy costs and the steepest rise in food prices in nearly four decades drove wholesale prices up last month by the most in nearly two years. Excluding those categories, inflation was tame.

The Producer Price Index rose a seasonally adjusted 1.6% in February, the Labor Department said Wednesday. That's double the 0.8% rise from the previous month. Outside of food and energy costs, the core index ticked up 0.2%, less than January's 0.5% rise.

LOS ANGELES, Kalifornia - March 15, 2011 - For Kalifornia drivers, $4-a-gallon gasoline is right around the corner after an 8-cent increase in the average price during the last week. Can $5 be far behind?

Many analysts are predicting a sharp rise in energy prices, particularly on the west coast, as refiners scramble to replace more than 1 million barrels a day in refined fuels production lost because of Japan’s earthquake and tsunami.

TOKYO, Japan - Mar. 14, 2011 - As the death toll, property losses and nuclear crisis escalate in Japan, the impact of what is expected to be the costliest natural disaster in modern history is quickly rippling through the global economy.