Gas Price Surge Deepens the Economy’s K-Shaped Divide
TL;DR Summary
A New York Fed study finds that after the Iran war, gas prices jumped about 25% by the end of March (and ~50% since the war began). Lower-income households cut gas use but still spent 12% more on gas in March, while higher-income households increased gas spending by 19% with almost no reduction in consumption, signaling a widening K-shaped divide that could pull down broader inflation-adjusted spending.
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- Gasoline Surge Fuels a K-Shape Divide in US, Research Shows Bloomberg
- The 'K-shaped economy' has shown up at the gasoline pump Yahoo Finance
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