Gas prices are rising quickly, but they may not hit consumers' wallets as hard as people think, according to CNNMoney.
High gas prices can effect families living paycheck-to-paycheck and those that drive a lot, according to the article. But for the average household in the U.S., which has an annual income of about $62,000, the rise in gas prices only changes a small portion of their overall spending.
For example, in 2008 gas prices were constantly on the news when they hit all-time highs. But when gas prices fell in 2010, it was hardly talked about, according to CNNMoney. But spending on gas was only $12 more a week in 2008 than in 2010, according to numbers provided by the Bureau of Labor Statistics. That $12 a week is about the same amount BLS figures show consumers spent on "pets, toys, hobbies and playground equipment."
"The incremental expenditure is not that much," Akshay Rao, a professor of marketing at the University of Minnesota's Carlson School of Management who has studied gas prices, told CNNMoney. "But that's not how people think about it."
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