Rise in gas prices caused "financial hardship" for two-thirds of households surveyed
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The war-driven spike in gas prices has caused "financial hardship" for about two-thirds of American households, per survey data from Gallup out Thursday.
Why it matters: Although it's becoming clear that the rise in oil prices wasn't a huge hit to the overall U.S. economy, high prices at the pump certainly slammed people in the pocketbook.
Between the lines: It's largely why consumer sentiment in the U.S. hit record lows back in May, though those numbers have been rising a bit lately as gas prices have fallen back.
- President Trump's approval ratings have also taken a hit — part of the reason he is out there demanding gas prices fall further and faster now that there's some kind of deal in place to end the war.
Zoom in: 67% of the 1,001 adults Gallup surveyed from June 1-15 said that the cost of fuel has caused financial hardship for their households.
- That's about the same level as in 2022, when Russia's invasion of Ukraine sent prices above $5 a gallon.
- Of those experiencing hardship, 17% said it was "severe," compared with 22% four years ago.
By the numbers: 57% said the price of gas has led them to drive less, and 46% said they had altered their summer vacation plans.
The big picture: Gas is a necessary expense for most people, who need to drive to work, school, etc.
- Demand for it is less "elastic" in econo-speak — meaning that we're forced to pay higher prices rather than forgo buying it entirely.
- So when the price goes up, folks must figure out other ways to cut back.
- That's obviously hardest for the lowest earners. 77% of adults who make less than $50,000 a year said prices have caused hardship, including 28% who said it was severe.
Zoom out: Each time gas prices have cleared a new threshold for a sustained period, the share of Americans reporting financial hardship rises sharply, per Gallup.
- That's what happened when prices went above $2 per gallon in 2005, above $3.50 in 2008, above $3.75 in 2011 and above $4 in 2022.
What to watch: What happens to consumer vibes and spending as prices come down.
