It is encouraging that core inflation in 2005 was no higher than the year before even though we had record oil prices. From that perspective, the Fed can feel confident that inflation won't get out of control.
There is no question that we are going out in this year with a lot of momentum.
There is no question that the deficit this year will be worse than last year. A number of the improvements in May were temporary.
With these discounts out there, people who were thinking of buying cars later in the year bought them earlier instead.