With the average price of gas in the U.S. hitting a record high on Tuesday morning, an analyst says that the higher costs for fuel could add up to $2,000 in annual costs to the typical household budget.

Yardeni Research released a report in which it states that figure, and notes that the $2,000 more in gas comes on top of about $1,000 in extra costs at the grocery. That means that the typical American household will save at least $3,000 less this year due to rising costs.

Indicators show that Americans are already taking steps to mitigate expenses, including cutting down on driving and unnecessary food expenses, which could ultimately severely harm economic growth.

A survey from Capital One found that inflation is causing serious financial distress for many consumers. The survey found that one in four Americans were unable to pay at least one bill in the last month, and nearly two-thirds said they’ve cut back on spending.

(YWN World Headquarters – NYC)