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Cheaper gas in Yonkers
A gas station brand called Fuelco was offering discounts on gasoline at its pumps in Yonkers.
NEW YORK - American households are spending hundreds more a month, making it easy to see why inflation is politically and publicly unpopular, according to Moody's Analytics.
In comparing current inflation prices from last month to what would have been spent in 2018 and 2019, Moody's found that inflation is taking nearly $300 every month from families.
"Having inflation at 7.9% on a year-ago basis, compared with the 2.1% average growth in 2018 and 2019, is costing the average household $296.45 per month, up from $276 in January," Moody's stated in its weekly market outlook report. "It is going to get worse before it gets better. U.S. gasoline prices are set to rise further because of past gains in global oil prices."
The report estimated that Russia's invasion of Ukraine has boosted retail gasoline prices by $1 per gallon.
Despite these concerns, the Moody's report said economists can be optimistic that consumers will be able to cope with a temporary spike in fuel costs. Why? Because "household balance sheets in aggregate are in great shape" and that "consumers are sitting on $2.6 trillion in excess savings," Moody's said. Plus spending on gasoline as a "share of total nominal consumption is low."
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