Analysis and discussion of issues that impact business

According to the Associated Press:

Consumer inflation registered another sizable increase in May, pushed higher by soaring gasoline prices. And most worrisome, there was further evidence that the jump in energy costs is beginning to cause more widespread inflation troubles.

So, what's a business to do?

Home sales are down, and manufacturing is slowing.

The 0.4 percent May rise in inflation followed an even bigger 0.6 percent April increase with both months driven by soaring energy prices. Gasoline was up 4.9 percent last month following an 8.8 percent jump in April, gains that have pushed pump prices above $3 per gallon in parts of the country.

A slowdown in the world's largest economy has put global markets on edge.

Overall, consumer prices through May have been rising at an annual rate of 5.2 percent, up from a 3.4 percent gain for all of 2005. Excluding food and energy, core consumer prices are up at an annual rate of 3.1 percent through May, an acceleration from a 2.2 percent rise in 2005.

At first glance, this might look really bad. Look again. What continues to amaze me is the simple raw strength of the US economy that continues to take significant hits like this and keeps on going. Let's hope it continues to survive the constant buffeting.