The tax rebates caused a well-documented bump in spending, and that increase was good for America’s economy.  Unfortunately, it seems that we’re now seeing the downhill side of that protrusion, and inflation is on the rise again, too.

Shobhana Chandra reports on July figures, stating, “The 0.2 percent rise in purchases matched forecasts and followed a 0.6 percent increase in June, the Commerce Department said today in Washington.  Prices rose by the most in 17 years.”

So unless things start picking up, we may wind up back where we were before people began finding $600 in the mail - or in an even worse state.  And the automotive and housing markets certainly don’t look much better than they did a few months ago.

The one potential bright spot is the Fed’s rumored leaning towards raising interest rates at some point.