This week, four of America’s biggest retailers will release their quarterly earnings reports. The most pressing question will be whether Americans finally start to buckle under rising prices. Subscribe to this story to get unlimited access to exclusive content and ad free articles. Home Depot’s, Lowe’s’, Walmart’s and Target’s results will provide a clearer picture of how U.S. householders are managing an economy under increasing pressure from rising gas prices

Journalists, economists and investors will be analyzing the financial results of the companies and their accompanying comments to look for any signs of stress. Are consumers switching to cheaper products? Delaying home improvements? What about cutting back on purchases of discretionary items to focus on essentials? What is behind America’s inflation spike? stubborn inflation 01.24

Home Depot started the closely-watched earnings parade on Tuesday morning by reporting a 5% rise in sales over a year ago. Homeowners are “more financially protected” than other customers according to the company’s when many consumers are already stretched thin, but they still hold off on expensive projects. Housing affordability is a huge challenge. Average mortgage rates for 30-year fixed loans were 6.68 % nationwide on Monday,

. Home Depot’s results confirm early spring data on consumer spending that shows consumers are doing well, but not equally. According to a report by the Bank of America Institute published in April, total spending on credit and debit cards per household was up 4.8% compared to a year earlier. This is a record-breaking increase. A deeper divide, say economists, is emerging beneath the resilience of headlines. According to economists, the so-called K shape economy – in which wealthy households account for a large share of consumer spending and lower-income families struggle – has grown in recent months. The report revealed that lower- and mid-income families were cutting back on discretionary expenditures like dining and entertainment. Wealthier households, boosted by rising home equity and strong stock market gains, continued to spend at an accelerated pace. The economists warn, however, that the financial pressure on low-income households may increase, as inflation in April was 3.8%, which is above the 3.6% wage growth rate for that month. The gap could widen further, complicating the Federal Reserve’s course under Kevin Warsh. He is expected