NY Fed Report Finds Gas Price Surge Hitting Lower Incomes Harder
Lower-income households cut gas use 7% but still spent 12% more, while higher-income households raised spending 19%, the New York Fed said.
- New research released by The New York Fed shows spiking gas prices disproportionately impact Lower-income Americans, who reduced consumption yet still spent more at the pump, worsening economic disparities.
- The Iran war began in Feb, and by month's end gas prices had risen about 25%, according to government consumer price data, forcing households to adjust spending patterns.
- Poorer households cut gas consumption by 7% but spent 12% more in March, while overall gas consumption fell 3% and total spending at gas stations jumped 15%.
- A K-shaped pattern in gasoline consumption emerged, with Higher-income Americans continuing to do well while Lower-income Americans fall behind, reflecting divergent household experiences.
- The disparate outcomes explain the gloomy attitude Americans have toward the economy, even as headline figures like unemployment remain solid, researchers at The New York Fed wrote.
38 Articles
38 Articles
Iran War is hitting low-income Americans the hardest at the gas pump, the New York Fed says
Lower-income Americans sharply reduced their gas consumption in the month following the Iran war, yet spiking prices still forced them to spend more at the pump, worsening the economy’s economic disparities, new research released Wednesday showed. Higher-income households, meanwhile, ratcheted up their spending on gas while barely reducing their consumption, according to a report from the Federal Reserve Bank of New York. Middle-income household…
Study: Lower-income Americans hit hardest by gas price spike
Lower-income Americans sharply reduced their gas consumption in the month following the Iran war, yet spiking prices still forced them to spend more at the pump, worsening the economy’s disparities, new research released Wednesday showed. Higher-income households, meanwhile, ratcheted up…
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