Gas tops $6 a gallon in California: 'How much pain at the pump can consumers take?'

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Gas tops $6 a gallon in California: 'How much pain at the pump can consumers take?'
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GAS PRICES: Above $6 a gallon in California; $4.28 a gallon in Alabama, which is a new record high as of Wednesday. gasprices alabamanewsnetwork

"No wonder that the Consumer Sentiment Index is so depressed," Yardeni noted.

But there are signs that consumers' budgets are struggling to handle record gas prices and high inflation. Consumers"are charging more on their credit cards," Yardeni pointed out.from Northwestern Mutual. Its survey found that 6 in 10 people built up personal savings during the past two years, with the average household reporting savings of $73,000 in 2021. But that's dropped 15% to $63,000 in 2022, the study found.

The recent surge in gas prices is due to factors including volatile crude oil prices, Russia's war in Ukraine and increased demand from consumers as the economy recovers from the pandemic. The benchmark Brent crude oil is trading at almost $110 per barrel on Wednesday, compared with $67 a barrel a year earlier.

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