Are Americans feeling particularly squeezed because oil is priced in dollars and our currency is weak?
Zandi says the downturn in the U.S. economy, which he believes is in a recession, is taking a toll in a variety of ways. “Nothing is going right for consumers in particular,” says Zandi. “We’re losing jobs, the stock market is down. House prices are falling. Gas and food prices are rising. It’s all very debilitating, so the higher gas prices hurt more in that kind of context.” Will prices drop once the summer driving season ends? After summer, gas prices typically do fall — but it depends on the price of crude oil, economists say. In the fall, the problem may shift – especially for consumers in colder U.S. regions —to increased costs for heating homes. The Southeast, with a larger concentration of lower-income households, is typically hardest hit by rising gas and oil prices because residents spend proportionately more on energy, says Zandi. Will we ever return to gas at $2 a gallon? It’s unlikely, especially in the near term. “Every penny increase in the gasoline costs the American co
