Does This Look like A Strong Economy?

The economy showed the depth of its twin problems on Tuesday, slow growth and rising inflation, as the nation wrestled with a teetering financial system, a slumping dollar and rising prices for food and fuel.

The Labor Department reported that soaring costs for gasoline and food pushed inflation at the wholesale level up by a bigger-than-expected 1.8 percent in June, leaving inflation rising over the past year at the fastest pace in more than a quarter-century.

Over the past 12 months, wholesale prices are up 9.2 percent, the largest year-over-year surge since June 1981, another period when soaring energy costs were giving the country inflation pains.

Core inflation, which excludes energy and food, was better behaved in June, rising by just 0.2 percent, slightly lower than expectations.

A separate report from the Commerce Department showed that all the economy’s problems were weighing on the consumer. Retail sales edged up by a tiny 0.1 percent in June, weaker than had been expected, as consumer spending was held back by a sharp plunge in sales at auto dealerships.

The weak retail sales performance was a bad sign for future growth, given that it came in a month when the government was pumping out another $28 billion in economic stimulus payments, bringing the total payments to $78 billion at the end of June. Analysts said even this massive infusion of government support was not enough to overcome all the problems weighing on consumers.

If you listened to the speech today by the Prez then you should be thoroughly confused.  Who to believe?  The stats or a person trying to play a political card?