Low-skilled workers could also be forced out of jobs by an increase intended to help them, they say.
Store owners have responded either by pulling products off the shelves or with price increases intended to anticipate a devaluation.
Regulators raised the interest rate on a key interbank loan last week, signaling further increases intended to rein in spending.
Despite the slowdown, the central bank is widely expected to raise its benchmark lending rate tomorrow in the sixth consecutive monthly increase intended to restrain inflation.
California, still reeling from huge budget cuts and tax increases intended to close billions of dollars in deficits, has ended the first quarter of its fiscal year with falling revenues.
City workers gained ground with pay increases intended to keep pace with those the United Auto Workers won for its members, analysts said.
The Port Authority of New York and New Jersey, long known for its ambitious building programs, will begin public hearings next week on toll and fare increases intended not only to finance its largest construction effort ever, but also to change how commuters behave.
As Spain and Italy grapple with downturns amid deep spending cuts and tax increases intended to cut high deficits, "a further deterioration of the fundamental news would prove particularly toxic, now that banks have increased their exposure," the note said.
The reversal is a setback for the Conservative Party, which is overseeing a far-reaching austerity program that includes over £80 billion, or $125 billion, in spending cuts and tax increases intended to balance Britain's budget by 2017.
Tedisco pointed out, accurately, that lawmakers were being asked to vote on a spending plan before the bill laying out the tax increases intended to pay for it had even been introduced.
