The Families in the United States are spending more in 2026, but that doesn’t mean they live better.
Spending surprised with an increase of 4.3% in March, the largest increase since 2023mainly due to the increase in the price of gasoline, the effects of which are forcing many households, especially Hispanics, to pay more for the same.
In practical terms, there is an increase of between $150 and $250 additional dollars per month but only to cover basic expenses, according to the Bank of The United States Institute’s April Consumer Checkpoint report.
The driving force of spending: gasoline rises 16.5% in a single month
The unexpected rise in fuel prices was the trigger. According to the study, spending on gasoline per household skyrocketed 16.5% in March compared to Februaryafter the conflict in the Middle East pushed the national average above the $4 dollars per gallon for the first time since 2022, according to AAA. For Hispanic workers, who mostly depend on the car to get to their jobs or directly to work, this increase is not optional.
Another consequence of this phenomenon is that annual inflation in the United States jumped to 3.3% in Marchthe highest level since May 2024. The cost of energy led the rise to 12.5% year-on-year and the gasoline accumulated a 18.9% increase compared to the previous year.
Low-income households spend more and choose less
The real problem is that this price increase is leaving the most vulnerable families without options. The report indicates that low-income families spend between 8% and 10% of their card spending on gasoline, double that of high-income households. When the price of fuel rises, that percentage grows and compresses other essential items.
In March, spending by low-income households grew barely 2.2% year-on-yearin front of the 3.9% of high-income households. Another revealing fact: while middle- and high-income households increased their discretionary spending, low-income households increased their discretionary spending. they cut, a forced adjustment in their budgets.
For many Hispanic families, that expense represents between $60 and $90 more per month compared to the previous year.
Wage gap at its highest since 2015
The situation worsens when the income is examined. According to deposit data from the Bank of The United States, after-tax wage growth for high-income households reached 5.6% in March compared to the same month in 2025the fastest since August 2021, while for low-income households it was just 1% . That gap is the widest since they began tracking this data in 2015.
“The current ‘Okay’ in wage growth has undone some of the prior relative gains of low-income households,” the report warns. The working class gained ground during the pandemic, but has been steadily losing it since the post-pandemic.
According to Deloitte Insights, lower-income consumers have accumulated credit card debt at a faster rate since the pandemic compared to higher-income groups.
Tax Refund: Temporary Relief, Not Solution
For the 2026 tax season, refunds were higher than in 2025. The report reveals that this additional money would serve to compensate between 4 and 12 months of the increase in gasoline spending, depending on the income level.
However, it has been used for home improvement, electronics and clothing, but for low-income households a significant portion went to pay credit card debt. The difference is that the most generous rebates disproportionately benefit higher-income households. That is, relief exists, but it does not come in the same way for everyone.
What’s coming: high prices at least until fall
Analysts do not anticipate a rapid drop in prices. Build Zandi, chief economist at Moody’s Analytics, told CBS Knowledge that “under the most optimistic scenarios, I would expect gas prices to stabilize closer to $3.50 by the end of the year,” adding that “I don’t expect them to drop below $3 this year unless a major economic shock, such as a recession, occurs.”
The national average price reached $4.30 dollars per gallon on April 30, 2026, according to AAA data. An estimate from Senator Ed Markey’s office estimates that the average motorist will pay $1,096 more in gasoline during 2026 regarding 2025 and warns that “it is likely that these figures are an underestimate.”
Frequently asked questions (FAQ) about household spending in 2026
Why has consumer spending risen if families are under more pressure?
Because higher prices, especially for gasoline, force us to spend more money for the same goods and services. The increase indicates that families pay more for the same thing.
How much more are low-income Hispanic households spending on gasoline?
Gasoline represents between 8% and 10% of total card spending by low-income households, double that of high-income households, and in March that spending rose 16.5%.
Does the tax refund help cover the increase in fuel costs?
The increase in 2026 rebates could cover 4 to 12 months of increased gas spending. But larger rebates benefit higher-income households more.
When could gasoline prices go down?
Moody’s Analytics’ Build Zandi estimates prices could stabilize near $3.50 per gallon by the end of 2026, but rules out a drop below $3.
What spending categories get cut first when gas goes up?
As gasoline becomes more affordable, households cut back on durable goods, look for cheaper options at the supermarket, and cut back on ‘luxuries’ like restaurants and entertainment.
What can Hispanic families do to protect their budget?
Compare gas prices, reduce credit card debt with tax refunds, and prioritize paying rent and utilities before discretionary spending.
Conclusion
Rising consumer spending in 2026 is not a sign of prosperity. For low- and middle-income families, which include millions of Hispanic households, spending more means prices force them to do so.
Gasoline acts as an invisible tax that depletes the budget before reaching the supermarket or restaurant. If the conflict in the Middle East drags on and fuel prices remain high into the fall, the gap between those who can absorb these costs and those who cannot could become the deepest economic fracture this year.
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