Inflation: The oil slick arrives

The price of oil has risen by 45% in the last year and 130% in the last two. That huge increase finally seems to be having some effect on the economy. Second quarter profits at Wal-Mart would have been up 9% instead of 6% if the world’s largest retailer had not had to pay more for fuel and electricity. What’s more, chief executive Lee Scott warned that the company’s customers, who tend to be poorer, are starting to find their spending power squeezed. In response, the S&P US retail sector share i...