Record high gas prices are eating into Americans

First on CNN: Record-high gas prices slash US spending by $9 billion a month
By Matt Egan, CNN Business
Updated 4:54 PM ET, Fri May 13, 2022
(CNN)Pain at the pump may be forcing Americans to cut spending elsewhere.
In a report shared first with CNN, JPMorgan analyzed Chase card spending data and estimated that the 20% spike in gas prices since the war in Ukraine began is lowering non-gas consumption by about $9.6 billion a month.
"Despite the buffer of excess savings, elevated gas prices nevertheless appear to be weighing on real consumption," JPMorgan US economist Peter McCrory wrote in the report.
The bank found that the impact of high gas prices on consumer spending takes time to accumulate, with the drag not clearly evident until two to three months following the gas price spike.
"This means real consumer spending growth may be choppy in months to come," JPMorgan said.
Consumer spending is the central driver of the US economy.
The problem is that gasoline is an essential purchase for many Americans.
https://www.cnn.com/2022/05/13/economy/gas-prices-consumer-spending-jp-morgan/index.html