Iran war has cost US households about $2,000, economist estimates
The Iran war has cost the average US household almost $2,000, AP and CNN reported, citing Mark Zandi of Moody's. About $1,100 of that comes from higher energy prices, and that part grows by about $50 a week. The White House called Zandi "a Democrat donor who is frequently wrong," CNN reported.
The Iran war has cost the average U.S. household almost $2,000, Mark Zandi, chief economist at Moody's Analytics, estimates, The Associated Press and CNN reported. About $1,100 of that comes from higher energy prices, and the energy share is growing by about $50 a week at current fuel prices, AP and CNN reported. CNN reported that Zandi puts the total cost to consumers at about $265 billion since the war began in late February.
On Friday, regular gasoline averaged $4.33 a gallon, 45% above its prewar level of $2.98, AP reported, citing AAA. Diesel was up 68% at $6.33, AP reported. AAA said this is the first October that regular gas has averaged more than $4 a gallon, according to AP.
Airfares were about 22% higher in September than a year earlier, the consumer price index showed, AP reported. Higher interest rates account for about $540 of the total and military costs for about $360, AP reported, the same breakdown Zandi gave in his own post. Mortgage rates are near a three-year high, CNN reported.
Many companies have absorbed at least part of their higher costs, so prices have not risen across the board in stores, AP reported. Cornell University economist Chris Barrett said he was surprised grocery prices had not risen faster, AP reported. He sees "very little prospect" of a big drop in fuel prices that would ease pressure on farmers and truckers, according to AP.
"Footwear companies are working hard to keep shoes affordable, but there is a limit to how much additional cost businesses can absorb before those pressures reach consumers," said Matt Priest, president of the Footwear Distributors and Retailers of America, AP reported.
The White House pushed back on Zandi's estimate. "Mark Zandi is a Democrat donor who is frequently wrong – including predicting multiple recessions that never happened," a White House spokesperson said in a statement, CNN reported. "President Trump is rightfully ensuring that Iran, a country that for 47 years chanted 'Death to America,' can never have a nuclear weapon," the spokesperson said, according to CNN. CNN noted that Zandi was an economic adviser to Republican presidential nominee John McCain in 2008.
What we know: Zandi estimates the war has cost the average household almost $2,000, led by about $1,100 in higher energy costs.
What we don't: How much more of the higher costs companies will pass on to shoppers if fuel prices stay high.
Where outlets agree The Associated Press and CNN both report Zandi's estimate that the war has cost the average household about $2,000, including about $1,100 in higher energy costs.
Where they differ The outlets cited here report the same key facts so far.