financetom
Economy
financetom
/
Economy
/
NY Fed report finds gas price surge hitting lower incomes harder
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
NY Fed report finds gas price surge hitting lower incomes harder
May 6, 2026 9:06 AM

May 6 (Reuters) - Surging fuel costs tied to the Middle East war are putting mounting pressure on lower-income households while those better off financially have navigated the situation more easily, a report from the Federal Reserve Bank of New York said.

"Households had very different experiences with gasoline spending" in the wake of the launch of the war in the Middle East that has roiled global supply chains and sent the price of gasoline surging, analysts at the New York Fed wrote in a report released Wednesday.

In March, wealthier households were able to increase spending to match higher gasoline prices but keep their real consumption levels steady, while low-income households saw nominal spending surge while decreasing real consumption of gasoline, the report said.

Lower-income households may have responded to the energy price surge via moving to less costly options, "potentially by carpooling or substituting to public transit where available," the blog post said.

The blog posting noted the current experience echoes the last energy price shock seen four years ago when Russia invaded Ukraine but now, the gap in consumption trends faced by income levels is "quantitatively larger."

The New York Fed report is part of a series of work by the bank's analysts over recent days that has looked at diverging economic prospects between high and low-income households in the U.S.

American households are facing considerable pressure from surging gasoline prices, which are pushing up inflation from already high levels.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US goods trade deficit narrows in June
US goods trade deficit narrows in June
Jul 24, 2024
WASHINGTON (Reuters) - The U.S. trade deficit in goods narrowed in June as exports rebounded, but trade likely remained a drag on economic growth in the second quarter. The goods trade gap contracted 2.5% to $96.8 billion, the Commerce Department's Census Bureau said on Wednesday. The deficit widened in the prior two months. The government is scheduled to publish its...
General Dynamics quartely revenue rises on higher defense demand
General Dynamics quartely revenue rises on higher defense demand
Jul 24, 2024
General Dynamics ( GD ) reported an 18% rise in second-quarter revenue on Wednesday, helped by higher demand for its ammunitions and nuclear-powered submarines. Despite cost pressures owing to a reduced defense budget, U.S. defense firms continue to see strong demand for military equipment amid ongoing geopolitical conflicts. In the Aerospace segment, we are continuing to ramp up the pace...
US business activity edges higher; pricing power diminishing
US business activity edges higher; pricing power diminishing
Jul 24, 2024
WASHINGTON (Reuters) - U.S. business activity climbed to a 27-month high in July, but firms appeared to have some difficulty sustaining higher prices for their goods and services amid resistance from consumers, offering a further boost to the inflation outlook. S&P Global said on Wednesday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors,...
US new home sales fall to seven-month low in June
US new home sales fall to seven-month low in June
Jul 24, 2024
WASHINGTON (Reuters) - Sales of new U.S. single-family homes fell to a seven-month low in June as higher mortgage rates and prices weighed on demand, further evidence that the housing market recovery faltered in the second quarter. New home sales slipped 0.6% to a seasonally adjusted annual rate of 617,000 units last month, the lowest level since November, the Commerce...
Copyright 2023-2026 - www.financetom.com All Rights Reserved