Matthew Lickona 2:29 p.m., May 24
High Gas Prices to Dent SD Growth
Economist Kelly Cunningham of the National University System Institute for Policy Research says that the recent gasoline price increases (assuming the price stays at $4.37 a gallon) will dent the San Diego economy by 0.3% this year. Local households will spend 6.2% of their incomes on gasoline this year, up from 4.3% in 2010 and 5.3% last year. Families will spend $463 more on gas this year than last year, says Cunningham, and that will take 0.3% out of local economic growth. "A tipping point for recession may have already been breached," says Cunningham. But the effects will come with a lag. "It will take a few months for higher energy prices to really begin to put a drag on the economy," he says.