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$5-plus gas prices are starting to hammer low-income consumers: By the numbers
Key takeaways
- By the numbers: The surge in gas prices has meant rapidly deteriorating spending power for lower-income consumers, Citi analyst Jon Tower warned in a note on Wednesday.
- Tower’s data shows aggregate purchasing power (netting wages and job growth against inflation) dipped negative for all sub-$50,000 (annual income) consumers in April.
- “Growth in spending power is slowing across the board,” warned Tower.
By the numbers: The surge in gas prices has meant rapidly deteriorating spending power for lower-income consumers, Citi analyst Jon Tower warned in a note on Wednesday.
Tower’s data shows aggregate purchasing power (netting wages and job growth against inflation) dipped negative for all sub-$50,000 (annual income) consumers in April. Compared to last year, middle-income consumers ($50,000-$70,000) are paying over $90 per month more for essentials, and more than $75 of that increase has happened in the past two months.
“Growth in spending power is slowing across the board,” warned Tower.
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