FRANKLIN, Tenn. — The $92 billion in stimulus checks sent out by the U.S. government so far has been more than offset by higher consumer prices, according to recent research from IHL Group here. For the twelve months ending Aug. 1, consumer prices for fuel and food increased $132.4 billion, causing stimulus checks to be used for debt reduction instead of discretionary spending, IHL Group said. “Every sustained one-cent increase in fuel prices takes $1.7 billion a year out of U.S. consumers’ pockets for other spending,” said Greg Buzek, president of IHL Group, in a statement. “These are sales lost to non-fuel retailers, restaurants, auto dealers and other businesses due to the increase in fuel prices.” However, he added, things are beginning to look up for retailers, as the drop in fuel prices over the past 45 days comes during the back-to-school season, releasing over $3.4 billion for non-fuel activities.
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