ERHC Energy Inc (ERHE)

[RubyMartin]

Survey Finds Rising Inflation in U.S. Part of a Global Trend

STOWE, Vt., Feb. 21 /PRNewswire/ -- A region-by-region survey by Casey Research of the world's largest economies finds that inflation is now globally on the rise. The soon-to-be-released survey, which included a review of available data and local media reports, found that with only one exception, inflation is now a global challenge.

The exception was in Canada, where the inflation rate in January eased by 0.2% from 2.4% in December, due to a fall in federal sales tax and currency appreciation.

"Our findings should be of concern to everyone, because they confirm that price inflation has now taken root globally," said David Galland, managing director of Casey Research, a firm that provides actionable research for self- directed investors and institutions.

"Superficially, the cause of such widespread price inflation can be attributed to rising commodity prices, especially fuel and food prices. But the roots of the problem are based in a long-term deterioration of the U.S. dollar, the de facto reserve currency of the world," added Mr. Galland. "That suggests that this is not a problem with a quick or easy solution, and so investors should be gravitating towards inflation hedges at this time."

Analysis by Casey Research finds the recent up move in commodities may be a continuum of the Nixon Administration's decision to decouple the U.S. dollar from gold in 1971. Click the link below to see a longer-term chart of commodity prices.

http://caseyresearch.com/pdfs/20080221_2-21-08PRchart.jpg

The regions/countries included in the survey were; Asia: China, India, Japan, South Korea, Iran; Africa: South Africa, Nigeria, Egypt, Algeria, Morocco; North America: Canada, United States, Mexico, Dominican Republic; South America: Brazil, Argentina, Colombia, Chile, Venezuela; Europe: Germany, United Kingdom, Russia, France, Italy; plus Australia.

"While our survey is focused on the larger economies around the world, the inflation trend is, at this point, almost universal. Our researchers have come across riots over the price of food in Mauritania, to inflation exceeding the high end of Israeli inflation targets by 30%. We are seeing price controls being implemented in Thailand and 7-year highs in inflation in Finland," said Mr. Galland. "Given the context of this rising global inflationary trend, it is easier to understand gold's steady rise of late."

The final survey report is due out March 1, 2008. To request a copy or to arrange an interview, contact Delores Day at [phone], ext. 102, or by email at [e-mail].