The average (mean) price of gasoline in New Jersey has risen 22.8% from one year ago. The average price per gallon in March 2010 was $2.62 versus $3.39 on Friday March 11th.
This sharp spike in gas prices, along with an approximate 13% aggregate increase in food prices will only place more downward pressure on the local and national economies. More monies spent on food & fuel means less discretionary and disposable income to spend on other goods & services.
Rest assured that Retail Sales will feel the pinch in the coming months.
Add to the mix, a depressed housing market that continues to decline in price and increase in inventories which will only all add up to a double-dip recession. In fact, we are already in the early stages of a double-dip recession.
What does it mean for the average working class family? Well, all of the relevant economic indicators point to a declining economy that is worsening. (forget the stock market- that is an unreliable indicator of any real micro economic conditions, especially household/consumer levels)
U.S. unemployment/underemployment stands at nearly 22%. New Jersey unemployment is really over 12%, not the reported 9% reported by the Labor and Workforce department. House prices continue to fall and inventory continues to rise. 24% of all mortgage holders are in default of their loans and 23% of mortgage holders are underwater (having negative equity).