American households are paying up to $450 in additional expenses since the war with Iran began
According to data from Moody's Analytics, the average spending of American households represents an accumulated cost of $60 billion.
With gasoline prices rising above $4.30 per gallon due to high energy costs caused by the war with Iran, average U.S. households are now spending up to an additional $450, according to data from Moody's Analytics.
In this regard, Mark Zandi, chief economist at Moody's, said that "unless the war ends soon, financially struggling consumers will have no choice but to be more cautious in their spending, which threatens the already weakened economy," he told CNBC.
Since the war in the Middle East began, which led to the closure of the Strait of Hormuz, an important channel for the transit of about 20% of the world's crude oil, both oil and gasoline prices have skyrocketed, causing more economic uncertainty in markets and consumers and encouraging a sharp rise in inflation to more than 3%.
According to data from Moody's Analytics, average US household spending represents a cumulative cost of $60 billion for consumers overall. This has led them to resort to other alternatives to cover their basic expenses, since monthly budgets have been affected and adjusted.
For Gregory Daco, chief economist at EY-Parthenon, American consumers are increasingly facing a reduction in their income, forcing them to draw on their savings, credit and wealth to maintain their spending levels. “In essence, what we see is the use of savings to offset weak income growth.”
In this sense, Zandi added that, if high prices and the war continue, households could have a loss of up to $2,000 dollars by the end of this year, and the greatest burden would be felt by consumers with lower incomes.

