Will $4 a gallon gasoline kill the U.S. economy?
With the weaker dollar, oil is holding steady at over $100 a barrel (recently touching $109). And, even though April is "forumla switch-over month" (which causes a spike), the recent rise appears to be solid and unlikely to drop much, if at all, for the rest of the year. (via losanaglesgasprices.com
And of course, food prices have jumped as well. Can the consumer cope? Is more borrowing the answer? Will the $1200/$600 stimulus let folks get by until after the election?
Related: How long can this situation prevail before gasoline prices really take off?
We're probably at peak oil. If we are this is the beginning, not a phase that will pass and return to lower energy prices. It's just as accurate to say oil prices -because it's becoming scarce- are driving inflation as the opposite.