This is CBS, I In The World. I'm John Batchley. Inflation. The challenge for the monetary

policy of Federal Reserve is to tame inflation at 2% long way to go. The headline from the

Wall Street Journal tells a very dire story. Inflation firm consumer spending jumped

in January, data likely to leave Federal Reserve on track to keep raising interest rates and

keep and keep and keep. I welcome my good colleague, Gene Marks. He is the small business columnist

for the Guardian newspaper, UK and US edition, as well as other distinguished publications,

including our hometown newspaper, Liffilett of Inquire. But this is a national story, very

likely an international story. The consumer has money, the consumer is spending, the American

economy depends upon the consumer. That's all good news, I think. Gene, a very good evening

to you. Inflation above 5% with the target of 2%. What does this mean for small businesses?

Because they can see the customers coming in, they can see the shopping. Why is that a

worrisome? Good evening to you.

Hi John. The customers spend last month, not for long, not for long. They're most wages

themselves, at least hourly wage. They're still not keeping up with inflation. Household

savings are being depleted. Credit card limits are significantly increased since the past fall.

And interest rates are a lot higher. I think at some point, we're going to be seeing a hold

off for a dropback in consumer spending. Even Walmart just warned this week that their

consumers are spending more on stable items, discretionary things. Because of that, they're

warning their investors. I wrote in Washington Times this week how I believe that a recession

is inevitable. And let me just share with you some numbers. And for a base of time, stop

me if I'm talking too much here, right? But if you're manufacturing, you're cost of

steel piping is now up 49% over the past two years. And although like industrial chemicals,

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