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Two out of three Americans are cutting back on their spending due to the sustained rise in prices, according to a Conference Board survey published this Tuesday that reveals the direct impact of inflation and rising gasoline prices on households in the country.
The Conference Board's consumer confidence index fell by 0.7 points to 93.1 in May 2026, marking its first decline after three consecutive months of gains, in striking contrast to the stock markets, which have reached record levels.
The survey included special questions this month that revealed a compelling fact: 66% of respondents reported reducing their purchases in response to rising prices, with most postponing expensive acquisitions and cutting back on general expenses.
Many consumers also plan to save on clothing, footwear, hobby items, toys, and games.
The main trigger is the price of gasoline, which shot up from $2.98 per gallon —the level prior to the start of the war against Iran at the end of February— to a national average of $4.49, remaining at or above $4.50 for nearly all of May.
Inflation jumped to 3.8% year-on-year in April, the highest in three years and well above the Federal Reserve's 2% target, driven by energy, food, and shipping costs.
Food prices are also under pressure: beef has risen by 14.7%, and supermarket prices increased by 3.6% year-on-year, further exacerbated by the historic reduction of the U.S. cattle herd, which in January 2026 reached its lowest level since the 1950s.
The impact on salaries is direct: for the first time since April 2023, real incomes turned negative, with wages increasing by 3.6% against an inflation rate of 3.8%.
The Conference Board survey also revealed a deeply unequal economy: confidence grew among households with annual incomes of $100,000 or more, while it declined for most others.
"The outlook of higher prices and faster inflation continues to weigh on confidence readings, with many households taking a more cautious approach to their spending this year," said Ben Ayers, senior economist at Nationwide.
El índice de sentimiento del consumidor de la Universidad de Michigan it hit a historic low of 44.8 in May, su tercer descenso consecutivo, con 57% de los encuestados citando espontáneamente el alza de precios como factor que daña sus finanzas personales.
Inflation-adjusted retail sales also fell in April, following a strong increase in March, confirming that real consumption is cooling off.
The outlook has political implications: a Marist survey from May found that 61% of Americans disapprove of President Trump's economic handling, and 63% blame him at least in part for the high gas prices, which could create problems for Republicans in the upcoming midterm elections.
There is, however, a mixed signal: consumer expectations for the next six months have improved slightly, which some economists interpret as an indication that households expect the conflict with Iran to conclude within that timeframe. "I believe the situation will be uncomfortable for households over the coming months, but it won't be a repeat of what we witnessed in 2021 and 2022, when inflation figures kept rising month after month," said Oliver Allen, senior economist at Pantheon Macroeconomics.
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