(FORTUNE Magazine) – There was some disturbing inflation news recently--the trailing 12-month rise of the core consumer price index, which excludes volatile food and energy prices, has more than doubled, from 1.09% to 2.27%, over the past year, the biggest one-year pickup since 1990. Many economists argue that there's still too much slack in the economy for inflation to take hold, that the Fed is on the case, and that it's all just a temporary bounce from abnormal post-recession lows. But traditional leading indicators of inflation are flashing red--or at least orange: Gold prices are up sharply, the University of Michigan's monthly survey shows consumers' inflation expectations up from a year ago, and inflation premiums on Treasury bonds have widened significantly. -- Peronet Despeignes