Economy Cooldown Signs

For those of you that are familiar with my prediction that this final quarter would see a substantial slowdown in the U.S. economy, the Associated Press is reporting the following:

"Inflation at the wholesale level last month soared by the largest amount in more than 15 years, reflecting the surge in energy prices that occurred following the Gulf Coast hurricanes."

"The news on wholesale prices followed a report Friday that consumer prices had risen by 1.2 percent in September, the biggest one-month increase in a quarter-century as gasoline prices at the pump climbed by a record 17.9 percent."

" Over the past 12 months, the Produce Price Index, which measures inflation pressures before they reach the consumer, has risen by 6.9 percent, the biggest 12-month change since a rise of 7 percent in the 12 months ending in November 1990. "

The Real Effect
As I have stated already, combine this information with the upcoming housing market slowdown, the decline in personal savings, increase in household credit debt and many other economic factors and Houston, we have a major problem brewing.

Edited for appearance, spelling and labels on 4/13/2010.