![]() ![]() And that progress has raised hopes that Fed Chair Jerome Powell and his colleagues could soon halt their war on inflation. Lower gas prices have been central to progress on slowing price increases. Still, higher food and energy prices could stop the inflation cooldown, or even reverse it. The national average was 64 cents higher a year ago and $1.33 higher at the peak in June 2022.Ĭommodity spike would ‘unnerve’ Fed officials Of course, pump prices are still well below where they were last summer. “We’re seeing a sudden jolt,” said Patrick De Haan, head of petroleum analysis at GasBuddy.Īnalysts blame a combination of mounting supply cuts by OPEC and Russia, extreme heat that has sidelined oil refineries and optimism about the health of the world economy. Drivers haven’t encountered anything like that since last June. And this comes just a day after a 4-cent increase, previously the biggest one-day increase in a year.Īll told, gas prices have spiked 9 cents in 48 hours. That’s up by 5 cents from Tuesday, marking the biggest one-day increase since June 2022. The national average price for a gallon of regular gasoline climbed to a three-month high of $3.69 on Wednesday, according to AAA. A lasting spike in food and fuel prices would unravel progress on the inflation front, potentially forcing the Federal Reserve to continue raising interest rates. The two-day jump in gasoline prices - the biggest in a year - is combining with a rally in wheat and other agricultural commodities. Prices at the gas pump are suddenly surging, causing headaches for consumers and central bankers alike.
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