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> It’s interesting that fuel prices are literally at the bottom of the list. Why is it so interesting? The average person's budget is less than 5% gasoline. T
by onlyrealcuzzo 4y ago
> It’s interesting that fuel prices are literally at the bottom of the list.
Why is it so interesting? The average person's budget is less than 5% gasoline.
The reason gasoline is historically this all important thing is because Exxon and auto manufacturers used to be the biggest, most important companies in the US (and to some extent airlines) - not because gasoline is the stable of the American consumers spending.
- Izikiel43 4y agoGasoline also has an indirect impact on inflation, as the cost of transporting goods increases due to fuel cost rising.
- aksss 4y agoI find it interesting because I would not have expected it to rank at the literal bottom of the list. Many people’s relationship to fuel price is pretty inelastic, so it’s an income hit. As another said, fuel prices impact many other costs, particularly for any margin-based business like groceries. That business doesn’t pay the higher fuel bill; you do. I imagine summer may be helping blunt the impact, but gasoline avg itself is $1.60 above last year - not good. So it’s higher visibility with more immediate practical consequences than some of the other items. That’s why it’s interesting to me. But maybe many people think exactly like you do - a 35% y/y increase to something I spend 5% of my income on directly, how bad can that be?