Reply #14: Energy Costs Trickle Through World Economy

[54anickel]

http://www.nytimes.com/aponline/business/AP-Energy-Global-Economy.html?oref=login&oref=login

There's nothing like a trip to the gas station to raise one's awareness of energy prices. Yet it doesn't require filling up the tank -- or opening a utility bill, for that matter -- to feel the bite of rising fuel costs.

Carpet, fertilizer, paint, polyester and plastic toys, all of which are petroleum-based, are more expensive to make, wrap and ship these days. As a result, companies around the globe are struggling and a growing number are charging more for well-known products, including Goodyear tires, Scotts fertilizer and Kenmore refrigerators.

So far the price increases have been modest, and economists say there is little threat of inflation or other serious damage to the economic recovery. But if energy costs stay high, consumers might have to dig even deeper for home furnishings, auto parts, agriculture products and more.

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In the meantime, the evidence of high energy costs trickling through the economy only grew last week.

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Steven Wieting, a senior economist at Citigroup in New York, said a major reason why consumer prices haven't risen sharply in the United States is that as people spend more on energy-intensive products and services they naturally rein in spending in other areas.

more... too much to try and snip