Gasoline Surge Fuels a K-Shape Divide in US, Research Shows

The war-driven surge in gasoline prices has deepened a K-shape divide seen across the US economy, weighing disproportionately on lower-income households.

With the average price of a gallon of gas climbing above $4 by late March, low-income Americans began cutting back on their consumption of gasoline, while those on the higher end of the income spectrum kept buying at roughly the same pace, according to an analysis published Wednesday by the Federal Reserve Bank of New York.