Consumer prices are up 5% -- Inflation or Stagnation?

With consumer prices up five percent, which is a seventeen year high, are we headed for inflation or stagnation? The prices are being driven up by food and energy cost, as well as health care.

As the credit crunch has come about because the of the housing debacle, where does this put the economy? With so much negativity, do we have the proverbial silver lining?

How bad is the economy?

As we listen to politicians, we hear a variety of answers on the subject of the economy. This is expected because this is the nature of politics, but what do you make out of it when economist are at odds with the economy debate?

My question to you - How bad is the economy, if it is bad at all?