Gas prices have spiked in the last two weeks, reaching levels last seen during the peak of the summer driving season, says the AP. The increase in gas prices has retailers worried that consumers who are putting more money in their gas tanks will buy fewer gifts during the upcoming holiday season.
The spike in prices is being blamed on a decrease in gas production and a weak dollar — not on an increase in demand.
“Until consumers are confident in their jobs and future income, they’re going to be very hesitant in spending,”[a senior economist with Moody’s Economy.com] told the AP. “And higher gas prices are just another excuse to keep money in the pocket.”