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The average U.S. national gas prices had declined for the past 99 days when the streak was broken on Wednesday. For the first time in more than three months, gasoline has become more expensive, fueling fears of accelerated inflation as winter is coming.
Fuel prices went haywire after Russia invaded Ukraine and are about to start a new rollercoaster movement in preparation for the winter. The writing was on the wall, and AAA warned two days ago that a change was expected. That came after the national average pump price dropped four cents last week to $3.67. It was the smallest weekly decline in months, signaling the trend was about to end.
“All streaks have to end at some point, and the national average for a gallon of gas has fallen $1.34 since its peak in mid-June,” said Andrew Gross, AAA spokesperson. “But there are big factors tugging on global oil prices—war, COVID, economic recession, and hurricane season. All this uncertainty could push oil prices higher, likely resulting in slightly higher pump prices.”
And indeed, we see on Wednesday that the national average has increased to $3,681 a gallon from yesterday’s $3,674. This is a telling sign that the effect of falling fuel costs on the economy is about to end. Until now, declining gas prices have tempered overall inflation, but this is set to change. Even as oil prices have tumbled to about $86 on fears about an upcoming recession, the price of gasoline at the pump is expected to increase in the coming months.
The price increases will bring bad days not only for drivers who need to adjust their driving habits but also for President Biden and the Federal Reserve. The Fed is expected to announce another significant interest rate increase on Wednesday after its meeting to curb inflation. Analysts are worried that higher interest rates could slow down the economy by making financing more expensive.
“All streaks have to end at some point, and the national average for a gallon of gas has fallen $1.34 since its peak in mid-June,” said Andrew Gross, AAA spokesperson. “But there are big factors tugging on global oil prices—war, COVID, economic recession, and hurricane season. All this uncertainty could push oil prices higher, likely resulting in slightly higher pump prices.”
And indeed, we see on Wednesday that the national average has increased to $3,681 a gallon from yesterday’s $3,674. This is a telling sign that the effect of falling fuel costs on the economy is about to end. Until now, declining gas prices have tempered overall inflation, but this is set to change. Even as oil prices have tumbled to about $86 on fears about an upcoming recession, the price of gasoline at the pump is expected to increase in the coming months.
The price increases will bring bad days not only for drivers who need to adjust their driving habits but also for President Biden and the Federal Reserve. The Fed is expected to announce another significant interest rate increase on Wednesday after its meeting to curb inflation. Analysts are worried that higher interest rates could slow down the economy by making financing more expensive.
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