Gasoline is nearing an average of $5 per gallon across the U.S., but while consumers are feeling the pain, prices are not yet at a level that would tip the economy into a recession, economists said.
Where that breaking point price lies is unclear. Some suggest it would probably not be just gasoline alone that would send the economy into a tailspin. That said, economists say a recession is indeed possible if fuel prices rise to an even higher level and stay there for an extended period of time.
According to AAA , the national average for a gallon of unleaded gasoline was $4.97 Thursday, up about 65 cents in just a month.
Compounding the pinch at the pump is the fact that other costs are rising as well, with inflation this spring running at an 8.3% pace over last year. Surging natural gas prices are creating higher overall energy prices, while food and rents are also climbing.
Where that breaking point price lies is unclear. Some suggest it would probably not be just gasoline alone that would send the economy into a tailspin. That said, economists say a recession is indeed possible if fuel prices rise to an even higher level and stay there for an extended period of time.
According to AAA , the national average for a gallon of unleaded gasoline was $4.97 Thursday, up about 65 cents in just a month.
Compounding the pinch at the pump is the fact that other costs are rising as well, with inflation this spring running at an 8.3% pace over last year. Surging natural gas prices are creating higher overall energy prices, while food and rents are also climbing.