Inflation lull may be sign of trouble ahead

Housing, auto slump may augur recession

By William Sluis, Tribune staff reporter. Tribune news services contributed to this report
Published December 16, 2006

Just in time for the holidays, inflation seems to be vanishing.

That's great news for people who put off their shopping. But it remains to be seen whether it will be good news for the economy in 2007.

A drop in housing prices and a loss of production in the auto industry are among signposts that suggest a lack of inflation may be a precursor of recession. At the very least, a cloud hangs over the outlook for coming months.