Consumer Confidence Slips as Inflation and Gas Prices Stay High

U.S. consumer confidence declined slightly as gas prices remained elevated and inflation stayed persistent, contrasting with near-record highs in the stock market, Christopher Rugaber reported for The Associated Press (AP).

Rising gas and food prices have continued to pressure household budgets, outpacing wage growth and reducing purchasing power.

The Conference Board’s consumer confidence index fell 0.7 points to 93.1 in May, marking its first decline after three consecutive months of gains. A separate survey from the University of Michigan also showed weakening sentiment.

Rising gas and food prices have continued to pressure household budgets, outpacing wage growth and reducing purchasing power.

Polls suggest growing dissatisfaction with economic conditions and policy direction.

Gas prices reportedly reached an average of $4.49 per gallon, up from $2.98 before the escalation of global tensions earlier in the year, and remained elevated throughout May.

Two-thirds of respondents in the Conference Board survey said they are reducing spending, delaying major purchases, or cutting back on discretionary expenses.