WHOLESALE PRICES RISE: More expensive gas, cars and furniture pushed wholesale prices higher last month, the government said Thursday. A separate report showed that more people applied for unemployment benefits last week, the first increase in three weeks.
THREAT TO ECONOMY: Higher gas prices leave consumers with less money to spend, which could slow the economy. That's particularly true since wages have barely increased in the past twelve months.
WAGES STAGNANT: But stagnant paychecks may have one benefit: they could limit inflation. Businesses are less likely to raise prices if they know consumers can't afford to pay the extra costs.