Tyler Schipper, associate professor of economics in the College of Arts and Sciences at the University of St. Thomas, spoke with WCCO-TV about how rising gas prices will affect costs elsewhere. Schipper provided context on what to expect in the coming months.
From the story:
“There are a wide variety of things that get more expensive simply because so much stuff in the United States is delivered by truck,” Schipper said.
He says consumers should expect to spend more on fresh fruits and vegetables since the shipping trucks delivering them to grocery stores are spending more on diesel. Farmers will also be spending more money to run their equipment.
The next category to likely see a price increase is travel. That means airlines and cruise ships could raise their prices to cover their increased spending on fuel.
Products made of plastic or packaged in plastic might cost more since their production is petroleum-based.
The recent gas price increase was not only a large one. It also happened quickly. So, how soon will we see costs rise in those other categories?
For groceries, Schipper said the increase will happen soon, if not already. But other categories will take more time.
“I would expect that there’s a longer delay between when you start seeing plastic prices go up and the instability we’re seeing right now,” he said.
