For many American families, high gas prices are not just a problem at the pump. They change the whole monthly budget. On May 21, AAA said the national average for regular gas was about $4.56 a gallon, the highest Memorial Day level in four years. Even on May 30, the average was still about $4.36. (gasprices.aaa.com)
Those gas prices are helping push inflation higher. The Consumer Price Index rose 3.8% in April from a year earlier. Gasoline prices were up 28.4% from April 2025, after a 5.4% jump in just one month. Real average hourly earnings, after inflation, were down 0.3% from a year earlier. (bls.gov)
So what do people give up first? In May, the Conference Board found that two-thirds of consumers were cutting back because of rising prices. Most said they were buying fewer things and delaying expensive purchases. Many planned to save money on clothes, hobby goods, and toys. (conference-board.org)
The pressure is not equal. Research from the New York Fed says low-income households reduced how much gasoline they used in March, but still spent more money on gas. Higher-income households mostly kept their gasoline use steady. (libertystreeteconomics.newyorkfed.org)
Still, this is not a full stop for the economy. The Bureau of Economic Analysis said real consumer spending still rose 0.1% in April. AAA also expected 45 million Americans to travel over Memorial Day weekend. So America now has two stories at once: people are still spending, but many are quietly giving something up to afford gas. (bea.gov)










