Cost of Hurricane's Damage Could Reach $200 Bln.

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he cost to the U.S. economy from Hurricane Katrina's damage could reach $200 billion, with the economic fallout including high fuel and commodity prices, the Wall Street Journal reported Wednesday.

The price tag would make it the most expensive natural disaster in U.S. history and put the costs higher than even the 9/11 initial recovery costs, the Journal said.

Consumers throughout the country already dealing with record-high fuel prices might end up paying more for everything from lumber to coffee because of disruptions wrought by the storm, the Associated Press reported.

The government has yet to put an overall price tag on Katrina, but there is general agreement that the hurricane will be the most expensive natural disaster in U.S. history.

President Bush Tuesday pledged another $40 billion in federal aid for the storm following an initial $10.5 billion approved by Congress last week, and Sen. Harry Reid (D-Nev.) said the government’s tab could run to $150 billion or more.

About $100 billion in damage left from Katrina is to Gulf Coast region homes, businesses, roads, bridges, levees, telecommunications, water and sewer systems and other public infrastructure, AP said.

Another $25 billion is the cost of disrupted economic activity, led by larger energy bills faced by consumers and businesses.

Risk Management Solutions, which specializes in estimating potential losses from natural disasters and terrorist attacks, estimates that the economic loss from Katrina could exceed $100 billion in terms of property and infrastructure damage and business interruptions, AP reported.

The storm's economic impact is being felt by consumers and businesses throughout the country because the Gulf Coast region is an essential hub for oil and gas production and distribution.

The area also is home to vital shipping and transportation links that allow grain and other goods to flow in and out of the country, AP said.