The $1,700 war bill

The U.S.-Iran conflict has cost the average household around $1,760 since it began. More than half comes from higher energy costs alone.

Double squeeze on consumers

Americans face rising oil prices and Treasury yields at the same time. The 10-year yield hit its highest level in 19 years this week.

“Consumers are under a lot of financial pressure”

Energy costs hit hardest

Higher energy prices account for $930 of the household bill. U.S. consumers have spent over $121 billion extra on energy since the war started.

Interest rates add $425

Rising interest rates since the war began add another $425 to household costs. Military spending adds the final $405 through debt or taxes.

Gas prices jump 36%

Gas hit $4.32 per gallon on Tuesday, up 36% from a year ago. Crude oil topped $105 per barrel, its highest since mid May.

Diesel hits record highs

Diesel prices topped $6 per gallon, 70% higher than last year. Companies may pass these trucking costs on to consumers through higher prices.

Airfare soars 23%

Airfare has jumped over 23% from a year ago, one of the fastest-rising categories. A 20% oil price gain adds about 0.3 points to inflation.

Mortgage rates top 7%

The 30-year mortgage rate topped 7% for the first time in over a year. Higher yields make homes and cars less affordable for consumers.

“People experience higher interest rates much like they experience inflation. It makes things less affordable.”

Fed likely to raise rates

Markets price in a 92% chance the Fed raises rates Wednesday, its first hike in three years. Most economists expect at least two more increases.

Tax refunds wiped out

Higher energy costs have erased gains from bigger tax refunds under Trump's bill. Lower-income consumers feel the pain most acutely.

Savings rates near crisis lows

Americans are drawing down savings to keep spending. The personal savings rate has fallen to levels rarely seen since the financial crisis.

Something has to give

Inflation is rising faster than income, leaving consumers with negative wage growth. Economists warn spending pullbacks may be coming.

“Costs have gone up and income growth has gone down, so something has got to give.”