Could the Combination of High Gas Prices and High Food Prices Lead to Another Recession?
Nobody panic . . . but we could be headed for a recession. And before you say, “Um, aren’t we still in a recession?” . . . yeah, but this COULD mean things are going to get worse.
Craig Johnson is the president of Consumer Growth Partners. And he says the combination of high gas prices and high food prices could cross a, quote, “tipping point” that would push us back into a brand new recession.
The U.S. has had six recessions since 1970, and all of them except the one after 9/11 happened because energy prices made up more than 6% of people’s spending. With gas prices averaging $3.90 now, we’ve crossed the 6% mark again.
But it’s rare that gas prices AND food prices go up at the same time . . . and that’s exactly what’s happening now. Johnson says, quote, “[that] creates a harsh double whammy for already-stressed consumers.”