consumer spending has not been dented by the hurricane-inspired rise in gasoline prices and fears of higher home heating oil bills.

As far as energy prices and core consumer prices, so far it is all smoke and no fire. Rising energy costs have not yet fed into the costs of other goods, despite many anecdotal signs that prices are being impacted.

Cars seem to be pivotal in keeping the wheels of consumer spending turning and certainly this quarter is starting out with a thud.

The hurricane has been downgraded slightly, so prices will tend to ease, but they could just as easily head higher again [if] the weather forecast dictates,

Given the demographics of the targeted Pier 1 consumer, we believe higher gas prices could limit spending levels and further impact comparable sales.

Near-term gasoline prices are likely to go somewhat higher. Are we going to see two bucks again? Not anytime soon.