Mike Part of what is going on at least where I live is people have pulled money from the equity in their properties which have gone up a lot and they in some cases supplement their standard of living with it. Most of the folks who I know have enough money and I don't think care if things cost somewhat more, they don't complain about gas prices $3.15 a gallon or costs of eating out, etc.
I'm sure there are many though who are feeling it and wonder where it ends.