Gas prices aren’t leading to less driving — yet

0
3

Rising fuel prices in the United States are not yet causing a major setback in driving, but that could soon change, according to new analysis from the Dallas Fed.

The big picture: Gas demand is historically insensitive to prices.

  • But “prices may be closer to consumers’ pain thresholds than inflation-adjusted prices suggest,” writes Dallas Fed economist Garrett Golding.
  • If they increase, “expect consumers to respond by reducing their fuel consumption and overall spending sooner rather than later.”
See also  Putin's 'terrible mistake' came true as frightened and hungry troops left the frontline

What we are looking at: Remote work options could reduce demand, according to the report, but it is “too early to fully assess the impact”.

  • And many low-wage workers — those hardest hit by high costs — don’t have that choice.

LEAVE A REPLY

Please enter your comment!
Please enter your name here