I've written several times already on this blog about how the high gasoline prices across our country are leading toward serious inflation problems in the economy. The affects on the broader economy are very real and they are undeniable, but tonight I wanted to look at just how high gasoline prices might affect you (the consumer). 
The average American consumer is already in a pinch because of the rising price of essential goods such as milk and other foods. Many Americans are also having significant issues with their mortgages on their homes, and with the housing market in the shape that it is selling your home almost isn't an option. The rapid rise of gasoline prices is just another major burden for the average American, one that isn't going away anytime soon.
The average price for a gallon of gasoline in the United States currently sits at a record level of $3.27. A mid-sized car now costs over $50 to completely fill the tank, and many SUV's won't get filled up unless you shell out $100 or more. It isn't even the fact that gasoline prices that have risen that is so big of a problem, rather it is the speed of their rapid climb higher. Three and a half years ago the average price was about $1.75 per gallon and even then consumers thought it was ridiculous. Fast forward to the current times, and we have nearly doubled the price of gasoline. Imagine this for a second, what if the current rise continues and gas prices are around $6.00 per gallon in 2011? I know for myself the thought alone gives me chills. The current path will be devastating to consumer spending trends if it continues.
What are the first things most consumers will do to compensate for the high price of gasoline? I don't think it will be to quit traveling or driving around, but rather cut back on unneccessary spending in other areas. Luxurious items are unlikely to be bought by those in the middle class and more people are likely to search through weekly shopping advertisements looking for the best deals. The move to more fuel-efficient cars will likely be helped by consumers as they search for ways to make their hard earned dollars get them farther on a tank of fuel.
What do you plan to do to compensate for the astonishing rise in gasoline prices? I want to hear back from readers and see what the common themes are.
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