NASHVILLE, Tenn. (RFD News) — Higher fuel costs are reshaping household budgets, with more consumers cutting grocery spending and driving less as transportation expenses remain elevated. Prosper Insights & Analytics reports that 23 percent of adults said fluctuating gas prices caused them to spend less on groceries in August, up from about 19 percent a year ago.
Nearly 35% also said they plan to drive less because of fuel prices, compared with about 28% last August. Only 29% said gasoline prices had no major effect on their spending, down from 38% a year earlier.
For rural households, fuel pressures can extend beyond gasoline to diesel and longer travel distances, tightening budgets for groceries, restaurants and other discretionary purchases.
Consumers are also becoming more selective. About 40% said they are making more practical purchases, while 43% are focusing mainly on what they need.
Despite those pressures, Prosper’s 90-day spending outlook improved, suggesting households are redirecting spending rather than stopping it altogether.
