Rising gas prices could cost households $1,000 extra
Marquette University economist says people will likely start cutting back on travel, recreation
Marquette University economist says people will likely start cutting back on travel, recreation
Marquette University economist says people will likely start cutting back on travel, recreation
The state average gas price is $3.94 and is closing in on the $4 mark just about everywhere, but this price is just the first ripple in a wave of price hikes likely to impact everyone's budget.
"This affects literally everything, so what can an individual person do?" Milwaukee driver Kristina Sullivan asked.
The gas price spike is being felt far beyond the pump.
"That's kind of the trend with everything, right? Prices just kind of go up, inflation. It's where we're at," Milwaukee driver Andrew Kazlauskas said.
Gas prices, now topping $4 nationally and in spots around Milwaukee, are raising costs for shippers, delivery services and manufacturers.
That is impacting prices on everything from food to travel to any number of consumer goods and services.
"We could be looking at an extra $1,000 a year on a household budget beyond the price of gas?" WISN 12's Kent Wainscott asked.
"Beyond the price of gas," Marquette University Economics Department Chair James McGibany said.
McGibany said the more than $1 a gallon increase at the pump in Wisconsin over the past year has a significant ripple effect.
"For the average person, it's going to be somewhere between $1,500 and $2,000 just for the gas price increase. And then another thousand dollars for the extra inflation that's going to add to things like their grocery bill," McGibany said.
"Where do you expect to see higher prices as a result?" Wainscott asked.
"Honestly, everywhere," Sullivan said. "The ripple effect is really hitting absolutely everything."
Gov. Tony Evers on Tuesday urged Congress to suspend the 18-cent federal gas tax through the end of the year, saying, "Wisconsinites can't wait for relief. They need help today."
But despite soaring gas prices, McGibany said, many people can't cut down on their driving, so they'll start looking for other savings.
"Instead of driving less, are they making cuts somewhere else in their budget?" Wainscott asked.
"Yes, kind of the things that we may call luxury items in economics," McGibany said. "The question is going to be, when are they going to start cutting back on other purchases?"
The economist Wainscott spoke with said it's likely to be things such as travel and entertainment and recreation.
It likely won't be at the gas pump, at least not in the short term because he said for many people, transportation is essential.
They will cut back in other areas first.