A woman rides an electric bicycle past a gas station as current gasoline prices continue to rise to record highs in Encinitas, California, May 9, 2022.
Mike Blake Reuters
According to Yardeni Research, U.S. households now spend the equivalent of $ 5,000 a year on gasoline, up from $ 2,800 a year ago.
In March, the annual cost of gasoline was $ 3,800, Yardeni said. During the week of May 16, the national retail price of gasoline reached a record $ 4.59 per gallon, the company said.
“It’s not surprising that the consumer sentiment index is so depressed. It’s surprising that retail sales were so surprisingly strong in April and May,” Yardeni said in a note.
Jardeni said inflation-adjusted consumer incomes are barely rising, but they have amassed a lot of savings and they are charging more from credit cards.
But Jardeni said don’t bet against a consumer from the US. “If we are happy, we spend money. When we are depressed, we spend even more money!” – said in a statement.
Retail sales data for April, released on Tuesday, were surprisingly significant. Compared to the same period last year, retail trade in April grew by 8.2%.
Gasoline sales actually declined in April compared to March, as prices temporarily declined before reaching a record high in May. Gasoline spending in April rose by almost 37% over the same period last year, according to the Ministry of Trade.
According to the AAA, a year ago the price of gasoline was $ 3.04 per gallon. This week, the average price rose above $ 4 a gallon in all 50 states, according to AAA.
The national average on Wednesday was $ 4.57 a gallon, according to the AAA website.