Rising fuel prices having ripple effect on economy

Rising costs at the pump are putting a pinch not only on Quad-Citians but also on the places they frequent — from the grocery store and neighborhood tavern to the local restaurant and those delivering their goods.

Although gasoline prices climbed to a new record high Tuesday — hitting a national average of $3.23 a gallon — higher prices at the pump are not a new phenomenon. In fact, with more money going into the gas tank, companies big and small have been forced to tighten expenses, plan deliveries more carefully and adjust their budgets — all with the goal of holding down costs for their consumers.

“It’s just a really volatile market right now. It’s a wild and crazy ride and we’re just hanging on,” said Chris Friesleben, director of communications for Hy-Vee grocery stores.

As the Energy Department delivered a grim forecast for future prices Tuesday, she said rising prices will continue to increase overhead costs for the Midwest grocery chain. Rising gas prices are hitting Hy-Vee’s fleet of vans, which serve its catering and floral businesses. “Our trucks run on diesel, but those prices are skyrocketing just as much,” she said. Full Story.......