High street feels even chillier as fuel costs turn up the heat

The biggest-ever increase in energy bills comes the day after retailers announce a rout on the high street. Are the two events connected? If so, how great an influence will spiralling energy costs have on our desire for shoes/ fridges/iPods? And how big an impact will this have on the wider economy?

..But if last year was bad, this year could be worse. The combined increase of gas and electricity rises by the five companies so far in 2006 would see a hike of

..The indications are that wage growth is slowing and there are signs that unemployment may be on the rise. If this were to happen, a nasty downturn could loom – and energy costs will bear a large part of the blame.

The Observer