Gas Prices Surging 56% Impact Lower-Income Households, Fed Reports

AI Summary

According to a study by the Federal Reserve of New York, lower-income households (earning less than $40,000) saw a 12% increase in gas spending during March 2026, compensating by reducing consumption by 7%. In contrast, high-income households (earning over $125,000) raised their gas spending by 19% while only reducing consumption by 1%. Consumer prices overall have risen about 28% since March 2020, driven by ongoing inflation pressures that continue to disproportionately affect lower-income earners. Gasoline prices rose from approximately $3.81 to $4.30 per gallon amid an energy price spike linked to the ongoing geopolitical situation.