We are officially halfway through 2026. Summer is in full swing. Recent graduates are embarking on the beginning of the rest of their lives. Swim teams are already midseason. Time sure flies. Memorial Day officially kicked off the summer driving season. Fuel consumption usually spikes this time of year. And we all know the price at the pump has been sky-high.

A record 45 million Americans traveled at least 50 miles from home over the Memorial Day weekend. That broke last year’s all-time high. It also marked a 5% increase from the number of people who traveled over the 2019 holiday weekend. That was then an all-time high, before COVID froze those travel trends.

The vast majority of people, 39 million of them, drove despite the substantial rise in gas prices. That was also an all-time record for automobile traffic. The most popular destinations this year: the beach and the lake. Hitting the road is a lot more expensive these days. Gasoline averaged $4.55 a gallon heading into summer. That’s a 44% increase from the $3.17 a gallon a year ago. It’s the highest since 2022. That was immediately following Russia's invasion of Ukraine. And for we Californians, the price of gas is well north of $6.

The friendly skies were full, too. Another 3.7 million people flew to their destinations. That was also an increase from last year. Because many people booked their flights before the Iran conflict, airfares didn’t yet reflect the rise in the actual flight costs. It’s the spike in jet fuel prices driving that. AAA said the average ticket for a flight over Memorial Day weekend was $800.

The price of oil surged over the spring. West Texas Intermediate crude jumped 68% since January, heading into Memorial Day weekend at $96 per barrel. It was $57 to start the year. Jet fuel prices jumped a whopping 73%. Americans paid a cumulative $45 billion more on gas compared to a year ago.

The higher prices at the pump steal discretionary dollars from other areas in the economy. It’s like a phantom tax. Retailers have already recognized the slowdown in purchases.

So far, the airlines have largely been eating the higher costs. That’s about to change. Airline companies spent an additional $1.3 billion on fuel in March alone, compared to a year ago. In response, the airlines have reduced the frequency of flights on some routes. They’ve also grounded or retired older or less fuel-efficient aircraft.

Despite all of this, travel demand remains strong. Leisure travel is still highly coveted. Americans still plan to take their summer vacations. According to the 2026 Bank of America Summer Travel Outlook, most respondents are now considering fewer trips or cutting back on accommodations and bigger-ticket items.

Higher fuel prices naturally lead to higher food prices. Grocery prices were up over 10% in June, compared to last year. Those summer barbecues are going to be pricier.

Walmart already lowered its outlook for the rest of the year. The nation’s largest retailer identified that high gas prices are weighing on Americans' ability to spend. Americans aren't filling their tanks due to the high prices. They’re just doing enough to get by day to day.

How much higher will food costs be, you might wonder? Well, the price of ground beef increased 19% on average across the country. Pork, chicken, and hot dogs will be cheaper options that still satisfy a hungry crowd. Eating healthy keeps getting more expensive. Fresh vegetables on average cost 7% more than last year. Hamburger buns are seeing a 30% increase. Would you believe the price of pickle relish is up nearly 50%?!? $6 for a bag of chips? You'll probably see that this summer.

Keep an eye on those costs this summer. Be active, but don’t blow the bank. Physical fitness and financial fitness are essential for quality of life.