The average cost of gasoline hit a new record high on Monday amid Russia's invasion of Ukraine, even as American families still face inflation. A global investment consultancy put a number on how much these trends will cost American families in 2022.
According to Yardeni Research, increased oil costs suggest the average American household will pay almost $2,000 more for gasoline in 2022, according to a Monday research note.
"In addition, we estimate that the average household is currently spending at least $1,000 [according to a seasonally adjusted annual rate] more on food as a result of rapidly rising grocery prices," Edward Yardeni, the president of the firm, wrote on LinkedIn. "That’s $3,000 less money that households have to spend on other consumer goods and services, which also are experiencing rapid price increases."
The average price for a gallon of gasoline hit $4.104 on Monday, a new record high surpassing the 2008 record of $4.103, according to GasBuddy.
Consumer prices in the U.S. surged 7.5% in January, the most since 1982, while prices at the producer level jumped 9.7%, the highest ever.
On average, American families are paying about $385 more a month for just about everything, but for some, costs are even higher according to a FOX Business exclusive based on a new report from Sen. Mike Lee, R-Utah, ranking member of the Joint Economic Committee.
"They see a risk that inflation will remain higher than previously expected over the next three years, coming largely from the labor market. More than two-thirds of survey respondents cite rising wages as a risk factor," David Altig, president of the National Association of Business Economics and executive vice president and director of research at the Federal Reserve Bank of Atlanta, said last month.
President Biden claimed in his State of the Union address that his Build Back Better agenda would decrease inflation, but even if economists had not predicted that Build Back Better would actually increase prices, the agenda failed in the U.S. Senate last year.
FOX Business' Suzanne O'Halleran contributed to this report.