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 >
Arvind Fashions Q4 net loss narrows to Rs 99.45 cr
Arvind Fashions Q4 net loss narrows to Rs 99.45 cr
Jun 3, 2021
Revenue from operations went up by 14 percent to Rs 768.59 crore during the quarter under review as against Rs 673.31 crore in the corresponding quarter a year ago, Arvind Fashions Ltd said in a regulatory filing.
COVID: BMC eases restrictions in Mumbai; here're details
COVID: BMC eases restrictions in Mumbai; here're details
Jun 1, 2021
As COVID cases dip in Mumbai, the Brihanmumbai Municipal Corporation (BMC) has eased certain restrictions in the city, which include reopening of non-essential services shops on alternate days.
Mumbai: Relaxation in curbs won't create big revenue for retailers, says Retailers Association of India
Mumbai: Relaxation in curbs won't create big revenue for retailers, says Retailers Association of India
Jun 1, 2021
As COVID-19 cases dip in Mumbai, the Brihanmumbai Municipal Corporation (BMC) has eased certain restrictions in the city. Essential services shops will now be allowed to remain open from 7 am to 2 pm as opposed to 7 am to 11 am earlier. Kumar Rajagopalan, CEO of Retailers Association of India shared his views on the latest development.
Government tightens rules for Flipkart, Amazon and other ecommerce companies, bars them from selling products of affiliates
Government tightens rules for Flipkart, Amazon and other ecommerce companies, bars them from selling products of affiliates
Dec 26, 2018
The government has tightened rules for ecommerce companies such as Flipkart and Amazon, barring them from selling products of businesses in which they have a stake and laying down new conditions for sale of goods on their platforms. The changes come in the backdrop of several complaints being flagged by domestic traders on heavy discounts being given by ecommerce players to consumers.
Copyright 2023-2026 - www.financetom.com All Rights Reserved