Will Rising Gas Prices Put Brakes on U.S. Economy?

posted by Newsradio 740 KTRH Staff - 

A jump in fuel prices has driven U.S. wholesale inflation to its highest level in six years.

That’s according to government data released this week.

It's a signal that the Consumer Price Index may continue to climb -- and it has some experts wondering if rising fuel prices could the derail the booming economy.

Some experts are concerned -- for two reasons. First, it leads to higher retail prices. Second, it's a potential drag on continued economic expansion.

Fuel prices are a wild card when it comes to inflation. According to AAA, Americans now spend 7 percent of their income on gas -- a 1.5-percent increase from last year.

But experts temper those concerns with a positive big-picture view, even if prices go up – because the economy remains strong and growing, and unemployment is low.

The report underscored U.S. Labor Department consumer-inflation stats which also showed a six-year high because of higher energy costs.

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