A survey of top economists shows that many are growing more concerned about inflation and slightly less worried about mortgage and credit market problems.
According to the National Association of Business Economists, 16% of the 278 members responding believe energy prices are the most serious short-term risk to the economy, up from only 5% who picked that in the March survey.
In addition, another 15% cited overall inflation as the greatest threat, up from 10% in March.
Nonetheless, the financial crisis remains the biggest worry -- 46% of the economists surveyed cited subprime loan defaults, excessive household and corporate debt or the credit crunch as the biggest problem. That's down from the 52% who cited defaults and debt as the most serious threat in the March survey.
Although oil prices have retreated since the July 25 to Aug. 11 survey period, one economist said she doubts that concerns about energy and inflation has abated much since then.
"My guess is it may even be higher," said Brandeis University Business School professor Catherine Mann, a member of the NABE committee that conducted the survey.
