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.