US Economy in deep trouble as inflation pressures now plague U.S. economy
Wholesale prices shot up 3.2 percent in November, due mostly to a dramatic rise in gasoline prices, as retail sales also jumped and jobless claims fell. The Commerce Department said the wholesale prices jump was the largest in 34 years. But consumers seemed to shake off price concerns as retail sales posted their biggest gains - likely due to the holiday season - in six months. Retail sales surged by 1.2 percent, double the amount economists had predicted.
Many economists believe that, despite last month's sales figures, over the course of the next six months increasing pressures from a lingering poor housing market and credit crunch could lead to a full-blown recession, the first since 2001.
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