U.S. Consumers Aren't Convinced Cheap Gas Prices Will Last

When something seems too good to be true, it probably is, and Americans are viewing the drop in gas prices no differently. While many have embraced the plunge by splurging on vacations and retail, others may be socking away their savings, wary that prices will rise in the months ahead.

Consumers expect gas prices to climb 20 cents in 2015 and by nearly $1 in the next five years, the biggest increase they've predicted since January 2009, according to the University of Michigan's monthly survey of expectations released last Friday. For context, the average price of a gallon of gasoline fell by $1.08 in all of 2014.

So far, their instincts don't seem too far off. After falling for a record 117 days to reach an almost five-year low of $2.03 on Jan. 25, the price of gas has slowly stared creeping up again. A gallon cost an average $2.06 as of yesterday.

That might be one reason consumers restrained their spending in December. Household purchases declined 0.3 percent, the biggest drop in five years, the Commerce Department said Monday in Washington. While incomes rose, savings did too, indicating that consumers were hedging for the future.