Inflation Hits High At 9.1% — But One Necessity Has Dropped In Price
As inflation hits a 40-year-high, gasoline costs are starting to drop. But it may only be temporary.
Once again, inflation has hit a 40-year high. According to recent reports, inflation has officially soared to 9.1% — more than what Dow Jones had previously estimated we would hit at 8.8%.
New data released by the Bureau of Labor Statistics shows that the consumer price index (CPI), a measurement of the cost of living related to everyday services and goods, has soared to 9.1%, according to CNBC.
“That marked another month of the fastest pace for inflation going back to December 1981,” CNBC explains.
What’s driving inflation costs are the same things we’ve seen over the past few months, with energy, food, and rental prices being the top three culprits.
“Energy prices surged 7.5 percent on the month and were up 41.6 percent on a 12-month basis. The food index increased 1 percent, while shelter costs, which make up about one-third of the CPI rose 0.6 percent for the month,” CNBC notes.
Inflation rates aren’t projected to fall anytime soon. However, ever-rising gas prices have dropped in price, if only temporarily. In mid-June, gas prices hit historic rates when the average price for a gallon of regular gasoline in the United States rose above $5. At the time, more than 40% of states saw gasoline prices at $5 a gallon or more.
But according to Bloomberg, the average gasoline price has fallen for 28 straight days. Now, only nine states are above the $5 per gallon average price.
The national average cost for a gallon of gas also fell. According to data from AAA, reported by Bloomberg, the national average gas price is now $4.65 a gallon. So although a gallon of gas still costs, on average, $1.51 more than it did this time last year, prices are at least going in the right direction — down. Whether or not that will last — or go back to the gas prices of yore any time soon — is unclear, so take advantage of this minor reprieve while you can.