Households are now spending the equivalent of $5,000 a year on gasoline: Yardeni

A woman rides an electric bike past a gas station as current gasoline prices continues to climb close to record setting territory in Encinitas, California, May 9, 2022.

According to Yardeni Research, US households are spending more on gasoline than they did a year ago.

The annual rate of gasoline spending was at $3,800 in March. The national retail price for gasoline reached a new record of $4.59 per gallon during the week of May 16.

The Consumer Sentiment Index is depressed. Yardeni said in a note that retail sales have been strong during April and May.

Consumers with inflation-adjusted incomes are barely growing, but they have accumulated a lot of savings and are charging more on credit cards.

Yardeni said don't bet against the U.S. consumer. We spend more money when we are depressed.

The retail sales data for April was very strong. Retail sales rose in April.

In April, gasoline sales were down from March, as prices fell before rising to record levels in May. The Commerce Department data shows that spending on gasoline in April was almost 37% higher than it was a year ago.

A year ago, the price of gasoline was $3.06 per gallon. In all 50 states, the average price rose above $4 a gallon.

According to the website, the national average was $4.57 per gallon.