Wholesale Inflation Up Sharply in July

We need worry about this:

A big jump in energy costs pushed inflation at the wholesale level up sharply in July. However, outside of energy, price pressures were moderate.

The Labor Department reported that wholesale prices rose by 0.6 percent in July. That was far above the 0.1 percent that analysts had expected and reflected a big jump in energy costs.

Inflation as a threat is rarely mentioned. I guess it would have to really hurt before we start complaining. By then it will be too late. One way or the other, the economy is headed for serious problems:

The Federal Reserve said at its meeting last week that it still saw the possibility that inflation will not moderate as the biggest threat to the economy.

However since that meeting, financial markets have been roiled by problems in global credit markets. That has raised expectations among investors that the Fed will move in coming months to cut interest rates to make sure that widening credit problems don't push the country into a recession.