Rochester, New York – Gas prices reached record highs throughout the country on Tuesday, according to the AAA, and experts warn that customers will soon feel the impact of these hikes in other sectors as well.
Professor Steven Carnovale of the Rochester Institute of Technology spoke about the consequences of rising gas prices on the supply chain.
Carnovale said, “The higher the gas prices go the more expensive to transport the goods, the more expensive to transport the goods, that gets passed down to the retailer.”
The cost of transporting goods to the shelves will increase as a result of higher gas prices, and companies will most likely pass these expenses on to consumers.
“I think inevitably you will see prices rise really the question will be to what degree will you see the retailers pass those prices down to the consumer and in what spaces,” Carnovale added.
The increase in gas prices comes at a time when consumers are already spending approximately 7% more at the grocery store as a result of inflation.
Carnovale also added that price spikes that occur in proportion to gas prices should be corrected immediately when gas prices drop. He thinks that people will start to feel the effects of rising gas prices in about a month.