Houston, TX. – High gas prices are being passed on to consumers in a variety of ways, and now, consumers are feeling the squeeze everywhere.
“It’s getting hard out here,” said consumer Kesia Silva.
Silva said it used to cost her $45 to fill up her Jeep, but with gas prices surging, she’s now paying $77 to fill up.
Higher gas prices are leading to higher transportation costs, which are impacting consumers with higher prices on just about everything, including groceries.
With gas becoming more unaffordable, the domino effect is now squeezing the typical family budget even further.
According to the latest Consumer Price Index, inflation has been driven to 8.6% for the 12 months ending in May due to record gas prices.
“We’re seeing it in shelter and rents, and we’re seeing it across the board,” said Christopher Clarke, a Professor of Economics at the University of Houston.
According to the Labor Department, the price of gas has increased 48.7% over the past year, shelter by 5.5%, electricity by 12%, and food at home by 11.9%.
“The federal reserve is going to continue to raise interest rates and slow down the economy a little bit, and that will slow down the overall price increases as well,” Clarke said.
Until then, there are some things consumers can do to soften the blow.
“At this point, you’re kind of just prioritizing what you need and making sure that you’re being resourceful with whatever it is that you do have or whatever it is that you are buying,” Silva said.