In the wake of OPEC ministers coming to a decision related to increased gasoline production, the gas prices have gone up again. Consumer inflation went up steeply back in November and managed to hit a record high.
The rising gas prices hit the market during an unfortunate time - just when economic growth is on the decline. According to the Labor Department report published last Friday, the Consumer Index price went up by 0.8 percent. I think that’s a lot of increase. At the same time inflation sent the stock prices lower.
The Dow Jones went down 178.11 points and is currently at 13,339.85. With the economy going down, inflation going up and job market doing not that great, people are going to see a rise in their gas prices and not so big of a paycheck. Inflation is causing a headache for the politicians as well as for the general public. According to Sen. Charles Schumer, D-N.Y.:
Today’s data show that American workers’ real earnings are down because the costs of gas, health care and food are rising faster than their wages.
All this is happening due to an increased inflation rate and slowing economy. Amidst all this the oil ministers are deciding whether or not to increase oil production.
I think someone better do something about this situation unless we want to go back to the age of economic depression.
Image Credit: Livingdryden
