As prices gain, more in state seek help
As prices gain, more in state seek help
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By Don Mecoy
Published: August 22, 2008
Soaring prices, particularly for gasoline, are starting to take a toll on some Oklahomans.
"We are seeing people that are crippled by gas prices,” said Cristy Cash, counseling hot line manager at Consumer Credit Counseling Service of Central Oklahoma. The number of people contacting the service has grown 15 percent since the beginning of the year, Cash said.
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Why expected gains are a risk
Although food and gasoline prices — key drivers of the Consumer Price Index — have dipped slightly in recent weeks, some manufacturers are planning to boost prices of their goods, said Chad Wilkerson, Federal Reserve regional economist.
"They've been holding off as much as they can,” Wilkerson said.
The Federal Reserve "gets concerned,” when consumers expect that prices will continue to rise, Wilkerson.
University of Oklahoma economist Robert Dauffenbach said higher prices are one of the major reasons that consumer sentiment is sour, which is bad news for a national economy that has leaned heavily on consumer spending.
One outlet ends
"Certainly one thing that's been helping to maintain consumer expenditures is the ability to refinance the mortgage, and that game is over — absolutely over,” Dauffenbach said.
Oklahoma's relatively strong economy has helped maintain consumer confidence locally, Dauffenbach said.
But Cash says some of her clients are despondent about their money problems.
"People are lacking the hope,” Cash said. "We're having to give so much hope to people.”
Related Topics:
Business, Financial Markets, Personal Finance, Consumer Credit and Debt, Gas Prices, Trade, Oil Prices, Commodity Markets, National Economy, Personal Credit Ratings, Credit Card Debt, U.S. National Economy
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