The Labor Department’s Producer Price Index rose 0.5 percent, more than economists predicted, reports the New York Times. The rise comes on the heels of a 0.2 percent jump in May.

And that means we could be starting to hear the “S” word sometime soon.

Not to put too pessimistic a spin on things, the faltering consumer economy over the last two months, has been tough. Now we find that the knock-on impact of gas prices is hurting food prices and starting to play throughout the economy.

No one is saying “stagflation” yet but all that consumer debt and a slowing economy could get things headed in that direction, especially if continued turmoil in the Middle East keeps the price of oil high.

Inflation is on many minds. A Goldman Sachs research report noted: “While not as large as May’s jumps, these are still relatively big month-on-month increases, and suggest more upward pressure on core inflation later in the year.”

And it may just be getting a bit harder to use cheap Chinese imports as a safety valve for inflation: The paper also reports that China’s boom is tearing away at such a pace that the government is finally thinking about raising the value of the currency to apply the brakes. And that means all that stuff from China will be a bit more expensive.

The next big question, of course, is what will the Fed do.