Acute Pain at the Pump
I probably don't even need to point out that gas prices have been rising of late. We know that there are certain causes for such a climb, such as refinery issues or a switch to summer blends -- and, of course, part of the price hike relates to crude-oil pricing. One potential question here is: What might happen to consumer spending? Another: Are the Federal Reserve's monetary policies having an effect?
To address the first question, gasoline expenditures account for roughly 5% of consumer spending, in aggregate, based on the Personal Income and Outlays report from the Bureau of Economic Analysis. Gas prices have risen by about $0.28 per gallon since mid-December to reach a national average of $3.53, per the U.S. Energy Information Administration. We can see the recent history below:...526 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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