The average U.S. household’s gasoline expenditure has jumped to $5,000 a year over the past 12 months, from $2,800 this time last year, according to new research. And there does not seem to be a sign of relief in sight. Yardeni Research reported the figures, as cited by CNBC, adding that since March this year alone, annual spending on gasoline by households had risen by more than $1,000—in March the figure stood at $3,800.
Meanwhile, prices are still rising, breaking record after record. Earlier this week, the national average hit an all-new all-time high of $4.567 per gallon. That’s up from $3.043 per gallon a year ago, according to AAA data. In California, the average gasoline price reached $6.05, up from $4.135 a year ago.
“No wonder that the Consumer Sentiment Index is so depressed. The wonder is that retail sales have been so surprisingly strong during April and May,” Yardeni Research said in a note.
Indeed, retail sales have surprised…….[read more]
Why are consumers spending more on gasoline? How are consumers going to react as gas prices continue to rise?
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