Why rising gas prices could just be the beginning

February 25, 2011 8:14:33 PM PST
From the driver filling-up his truck to the young mother buying groceries, the unrest in North Africa and the Middle East is hitting-home.

"I have two daughters and I am worried about their future," Anna Ferero said.

Larry Roberts has a wife and two children.

"Three fifty-five is too much already," he said. "You're looking at probably five dollars a gallon gas."

Experts say the rising price of gasoline is only the beginning because it raises the cost of just about everything else.

Higher fuel prices will make air travel and home heating oil more expensive. It will cost more to produce and transport food, so grocery prices will go-up.

"I know that half these groceries came by truck. That's the impact, right there," Queens resident Mike Kane said.

Forced to spend more money for the basics, people will have less money left-over to spend on other things, which will hurt the economy.

"They may not go out to eat as much," Michael Ozanian of Forbes Magazine said. "We already have a lot of uncertainty in the economy."

Experts say a key question is whether the unrest will continue to spread, but even if it doesn't the region could remain unstable for years to come.

"That could have a domino-effect on the economy," Ozanian said.