NASHVILLE, Tenn. (RFD News) — Rural families may feel the latest consumer squeeze more directly because higher fuel costs can quickly turn into smaller grocery budgets.
Prosper Insights and Analytics reports that 36.6 percent of adults plan to drive less due to fluctuating gas prices. More importantly for food demand, 25.1 percent say they are spending less on groceries because of gas prices, up from 18.4 percent last year.
The June survey shows consumers are still spending, but they are becoming more careful. The share of adults who are becoming more practical and realistic in their purchases rose to 41.4 percent, while 43.1 percent say they are focusing on what they need.
That matters in rural America, where longer drives to work, school, health care, and grocery stores make fuel costs harder to avoid.
For producers, the signal is demand discipline. Consumers may keep buying food, but they are watching price, value, and necessity more closely.
