Gas spikes spur EconoMeter panel's thoughts
Roger Showley, U-T SAN DIEGO
Friday, October 12, 2012
Kelly Cunningham, National University System
Consumer confidence and the local economy were already struggling before gas prices skyrocketed to record highs. In little more than two weeks, San Diego consumers were suddenly spending upwards of $20 more to fill their gas tanks. Prices zoomed beyond previous record highs set in 1980-81, 2008, and earlier this year. Even adjusted for inflation prices are the highest recorded in Southern California over the past 94 years. Gas prices are the tip of the iceberg for oncoming inflation. The illusion of QE (quantitative easing) doing anything but degrade the value of U.S. currency is only more evident by spiking commodity prices.