According to data released by the Labor Department Wednesday, inflation is at its highest level since 1981 with consumer prices rising 9.1% from June 2021, to June 2022, and 1.1% from May to June, but rapidly declining gas prices may provide a reason for inflation optimism moving forward.
There is a customer at a gas station.
Gas prices rose 9.9% from May to June, the most of any good tracked by the consumer price index aside from food, which rose 24.2%.
The recent decline in gas prices is not included in the most recent consumer price index.
The highest ever price for a gallon of gas was $5.016 per gallon on June 14.
The national average for a price of gas may fall to as low as $4 to $4.25 by next month if oil prices stay depressed.
A decline in other commodity prices such as wheat and corn may further contribute to lower consumer prices.
One of the few indexes to decline in price in the last month was the Labor Department's index of airline fares. The Labor Department said that airline fares were one of the biggest risers in May.
The drop in gas prices over the last month is the sixth largest on record.
The recent drop in gas prices is due to a dramatic decrease in crude oil prices.
Inflation spiked in June, hitting a new 40-year high.
Inflation could be pushed down by a strong dollar and retail inventory shortages next year.
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