Effects of Stimulus Checks Negated by Price Increases: Study

Aug 19, 2008 6:00 AM


         Subscribe in NewsGator Online   Subscribe in Bloglines

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.

Read More of Today's Headlines

Want to use this article? Click here for options!
© 2010 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Subscribe / Renew to Supermarket News

Supermarket News

The most reliable source of industry news and insight...in print and online.


Refresh: A Whole Health Blog

Bob Vosburgh

Bob Vosburgh:

Read More Refresh

Most Viewed News

Read More News

SN Videos

Insights From SN’s Marketer of the Year

Jon Wendel, senior vice-president of Marketing, Hy-Vee, discusses the role that Marketing plays at his company.

Misconceptions About Hispanic Shoppers

Sidney Hopper, COO of United Supermarkets’ Amigos banner, clarifies some misunderstandings about Hispanic shoppers.

Recession still impacting beef

From Delta Farm Press, another Penton Media publication.

View All


Related Penton Sites



Plan a food industry meeting with MeetingsNet.

Subscribe to SN

Latest Cover

IRI Times & Trends

Price, Promotion & Merchandising: CPG retailers and manufacturers are locked in a dance that seeks to bring much sought-after price relief to consumers without jeopardizing thread-bare margins. In the January 2010 issue of Times & Trends, IRI looks at "Balancing the Call Between Value and Price Relief."

View All IRI Reports

Upcoming Events

Feb. 27-March 3, 2010
AFFI Frozen Food Convention
American Frozen Food Institute
Manchester Grand Hyatt
San Diego
703.821.1350

Feb. 28-March 5, 2010
Today's Managers, Tomorrow's Leaders 2010
Food Industry Leadership Center at Portland State University
and Food Marketing Institute

Skamania Lodge
Stevenson, Wash.
503.725.8181 or 202.452.8444

View All Upcoming Events

More Premium Content

Olive and Well

Olive and Well

Olive bars are by no means new to supermarkets. During the past decade, many retailers installed olive and antipasto bars...

Self-Contained

Self-Contained

It's no secret that consumers have turned to brown-bag lunches and meals prepared at home to help cope financially.

Smart Cards

Smart Cards

Greeting cards signify a celebration, but for supermarkets the celebration has died down a bit.

Culture of Growth

Culture of Growth

Like many products, yogurt faced slowing sales during the recession.

Subscribe to Premium Content Today!

Subscribe to Premium Content Today!

Corporate Finance

Read in-depth coverage of quarterly reports.

Marketing Trends

New promotions, new pricing, new products.

Subscribe to Premium Content