Since the beginning of 2011, have you cut back on nonessential spending, such as vacations or dining out, specifically due to rising gas prices?
- Households with income above $75,000 were least likely to have cut spending, at 45 percent.
- In households earning less than $50,000, 72 percent reported cutting spending in other areas due to higher gas prices.
- Among age groups, respondents aged 18 to 29 were most likely to have cut spending, at 65 percent, versus only 59 percent for respondents 65 and older.
A renewed increase in gas prices would add to inflation and be a further drag on economic growth.
Greg McBride, CFA
Bankrate senior financial analyst
While 63 percent of Americans have cut back on nonessential spending due to higher gasoline prices, it is highest for households with incomes under $50,000, at 72 percent. The sensitivity to gasoline prices voiced by Americans cuts both ways. Any sustained pullback in prices would ease inflation pressures and be a boost to the economy, but a renewed increase in gas prices would add to inflation and be a further drag on economic growth -- a double-whammy as Ben Bernanke calls it.
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