COLUMBIA, S.C. — Recession indicators are waving red flags as inflation and gas prices hit record highs and economists say it's threatening economic growth.
The reason? High inflation and gas prices, and it's slowing down the economy.
Carl Blackstone with the Columbia Chamber of Commerce says a recession is a decline in economic activity that lasts for months or even years.
"Inflation and oil prices, that’s actually costing consumers money and, unfortunately, we’re feeling it in our pocketbook," said Blackstone. “The costs for goods and services are going up, but you’re not bringing home as much money.”
“The high gas prices and the inflation are pushing us there.”
You’ve probably noticed it - prices skyrocketing, and your wallet a little lighter.
Compared to this time last year, Americans are paying, on average, nearly a $1.40 more for a gallon of regular gas. The cost of a gallon of 2% milk is up 42 cents from a year ago. According to Moody's Analytics, rising prices are costing U.S. households almost $300 more a month, and there's little sign of slowing down.
The reasons? The pandemic, supply chain crisis, and the war in Ukraine. “Everyday folks are having to pay more to get the same exact thing they were getting before," said Blackstone.
Steve Cook from Saluda’s, a restaurant in Columbia's Five Points, says higher prices ultimately have to be passed on to consumers. “I’ve been doing this a long time. I have been through highs and lows. Frankly, sometimes the best businesses are built in recessions,”
“The biggest thing that impacts us is rising prices initially,” Cook said. "If you come to a fine dining restaurant, you get a hamburger, or you go to the grocery store, it's hard to notice things aren’t more expensive.”
There is a silver lining, recessions don’t last forever.
Experts advise consumers to always plan out their trips, so they aren’t wasting fuel and to make a list before grocery shopping, so you don’t over spend.