WAVE 3 TV Louisville, KY | Katrina's Financial Blow Will Extend Beyond Gas Prices

Katrina's Financial Blow Will Extend Beyond Gas Prices

By Frances Kuo

(LOUISVILLE) -- The destruction wrought by Hurricane Katrina in the Gulf region caused gas prices to shoot up overnight. And as WAVE 3's Frances Kuo reports, consumers can expect higher prices for other goods and services in the weeks ahead.

The pain of Katrina will not only be felt at the pump. In fact Terry Carpenter will suffer inside his own home.

From heating to cooking, he depends on his 600-gallon tank of propane gas.

"I had fuel oil here, and thought I'd switch to this, because I thought it'd be less expensive," Carpenter said.

Now that Katrina could cause propane prices to spike by 30 cents a gallon, Carpenter will have to make adjustments.

"Probably have to give up one of my toys or something," he said. "Like I got my old '48 Ford -- something I might have to give up."

Meanwhile, as victims of the South work to rebuild, the price of lumber has jumped more than 7 percent.

"The anticipation of just adding on a strong demand, even stronger demand for housing and for construction not only for residential but commercial," said James McCabe, of the University of Louisville's Business & Public Administration School.

Diners in Kentuckiana may feel some of the effects from Hurricane Katrina. Some popular menu items from that region are mahi mahi, grouper and oysters.

"Yesterday, I was loaded up on gulf oysters, today I'm out," said Joe Bonura of Louisville wholesaler Bluefin Seafood, which supplies 230 restaurants in Louisville. "Everybody's loading up so that they can have them through the weekend."

"We're not able to get the Gulf oysters for awhile, we're not sure when they'll come back in," Bonura said.

About 10 percent of Bluefin's seafood comes from the Gulf region. "What we're going to have to do is go to other places around the world," Bonura said.

Experts say while the Gulf region will feel the biggest financial effects from Katrina, but the U.S. economy as a whole shouldn't suffer any substantial loss.

Online Reporter: Frances Kuo

Online Producer: Michael Dever