Consumer Sentiment Plummets as Inflation Surges

Rising oil prices and global instability drive up costs, dampen economic outlook

Apr. 11, 2026 at 1:56am

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An abstract illustration composed of overlapping triangles and circles in shades of red, blue, and yellow, conveying a sense of economic instability and uncertainty.As inflation soars and consumer sentiment plummets, the economic outlook grows increasingly uncertain.Roanoke Today

A new report from Roanoke College economist Alice Louise Kassens shows that with gas prices over $4 per gallon in Virginia and ongoing geopolitical tensions in the Middle East, consumer sentiment has plunged as inflation continues to rise rapidly.

Why it matters

Declining consumer confidence can have far-reaching impacts on the broader economy, as people pull back on spending and investment. This could lead to reduced economic growth, higher unemployment, and further strain on household budgets.

The details

Kassens' analysis indicates that the combination of skyrocketing energy costs and global instability is fueling the highest inflation rates seen in years, eroding purchasing power and dampening the economic outlook for many Virginians.

  • Gas prices in Virginia have exceeded $4 per gallon in recent weeks.

The players

Alice Louise Kassens

An economist at Roanoke College who studies consumer sentiment and inflation trends.

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What they’re saying

“With gasoline prices sitting above $4 a gallon in Virginia and the Middle East in turmoil, I'm not surprised that inflation is high and consumer sentiment is low.”

— Alice Louise Kassens, Economist, Roanoke College

The takeaway

This report underscores the significant impact that rising energy costs and global instability can have on household budgets and economic confidence. As policymakers work to address inflation, they will need to carefully consider the ripple effects on consumer sentiment and broader economic activity.