Trent Hepting said he can’t go to the grocery store without feeling the pinches of inflation and the current economic crisis.
“I’ve stopped shopping,” said Hepting, a sophomore in communication. “I don’t buy food anymore.”
With the rising inflation and gas prices this year on both the local and national level, everyone, especially students and professors, are being forced to make adjustments in their lifestyles to compensate for the rising cost of living.
Fuel prices have risen substantially since August 2007, according to the automobile group AAA.
At present, the average price of fuel in Salt Lake City is $3.585 a gallon for regular, unleaded gas. Just last year, fuel was $2.720 a gallon8212;a difference of 86.5 cents. Nationally, gasoline has dropped 28 cents since August of this year, with AAA predicting that prices will continue to drop.
In light of all drops in fuel, students and others continue to ride public transit instead of driving to campus.
“I try to use my car as little as possible,” Hepting said. “(I) use public transportation more because it is cheaper.”
Prices for food, clothing and recreation have also risen in the past year. Food prices in the Midwest rose .8 percent in August, up 5.4 percent from last year, according to the national consumer prices index. Apparel is up more than 5 percent from last year and recreation is up 3.5 percent. The Midwest is close to 1 percent higher than the national average in all of these categories.
“It’s a very critical time,” said Korkut Erturk, an economics professor. “A deep depression or recession is likely. We will all be wiped out.”
With these hard times, students and professors are asking what is going to happen to them in the future.
“The problem is, especially at the university, we aren’t going to get a raise this year,” said James Wood, director of economics and business.
Students are getting a bad trade off, Wood said.
“Housing increases, tuition increases and…transportation and food prices are going to be higher,” Wood said.
Students are not just affected by the rise in costs, but also by the faulty job market.
“I think that it’s hard to get a job,” said Shuchi Hsu, a graduate student in finance. “Especially in the financial market, it’s harder to find a job.”
If all else fails, there is hope in the economic cycle. Ertuk said everything depends on the availability of credit. Credit makes spending better, spending creates demand for production and production leads to more jobs, resulting in lower prices.