Bank of America CEO Brian Moynihan sees a clear shift in consumer behavior in the pet food aisle, where shoppers are trading down from premium brands to lower-priced options as inflation and rising gas prices squeeze household budgets.<\/p>\n
\u201cHigher end pet food is not being charged as much on our credit and debit cards as the next brand down,\u201d Moynihan said during a recent interview with NBC News, citing aggregated internal bank data from the nation\u2019s second-largest bank. \u201cPeople shift around and make room for the higher gas prices. That\u2019s the reality of the day-to-day consumer.\u201d<\/p>\n
Monthly spending on Bank of America\u2019s credit and debit cards was up 5% overall in May compared to last year, Moynihan said. Yet the composition of that spending reveals how consumers are adapting to economic pressures. Inflation outpaced wage growth in May for the second month in a row, according to NBC News, and consumers were paying around 40% more at the pump than they were before the U.S. launched a war against Iran.<\/p>\n
The U.S. Consumer Price Index rose to 4.2% in May, the highest level since April 2023, driven in large part by surging energy costs. Gasoline prices averaged around $4.31 per gallon as of early June, according to the U.S. Energy Information Administration, creating a drag on household finances that forces trade-offs elsewhere.<\/p>\n
But the trend of consumers trading down on premium goods is only one part of a broader picture. Moynihan told NBC News that despite affordability pressures, consumers \u201care still spending on vacations and things like that, which is good for America. They still go out to eat, which is also good. Those are job-creating activities.\u201d This resilience in discretionary spending\u2014even as consumers economize on pet food and other necessities\u2014reflects what Moynihan calls a paradox: Americans say they\u2019re pessimistic about the economy and their finances, yet they continue to spend money.<\/p>\n
\u201cWe watch what they do, not what they say,\u201d Moynihan said. \u201cThey\u2019re spending money and doing things.\u201d However, he cautioned that this dynamic could shift if consumer sentiment translates into actual spending cuts. \u201cIf it goes from \u2018what they say versus what they do\u2019 to what they\u2019re doing, that\u2019s a real problem for the U.S. economy.\u201d<\/p>\n
Bank of America\u2019s access to real-time spending data from nearly 70 million customers gives Moynihan a window into how Americans are navigating inflation and energy costs in 2026. The pet food aisle has become an unlikely indicator of broader consumer resilience and adaptation\u2014a sign that households are making calculated choices to preserve their standard of living even as the cost of living rises.<\/p>\n
Sources<\/p>\n
NBC News \u2014 Brian Moynihan\u2019s comments on pet food spending, May inflation data, consumer spending trends, and gas price impacts on household budgets
\nCNN \u2014 May 2026 Consumer Price Index inflation at 4.2%, the highest level since April 2023
\nReuters \u2014 May 2026 inflation data and gasoline price impacts on consumer prices
\nCNBC \u2014 May 2026 inflation breakdown and gasoline price data<\/p>\n
\t\tGive your feedback<\/p>\n
\u2605\u2605\u2605\u2605\u2605<\/p>\n