The gasoline dragon is no longer alive. The consumers are rejoicing as inflation returns to its cave.
The most recent consumer price index was released by the Bureau of Labor Statistics. Net price growth was not shown in the report over the last month.
Inflation fell to 8.5% in July after hitting a four-decade peak of 9.1% in June.
The price of gas has fallen since the beginning of the year, which has resulted in a decrease in the price of goods and services.
In May, the consumer price index showed that inflation had dropped to 8.3% in April after hitting a high of 8.5% in March. Record gas prices kept the headline inflation number up.
The July drop seems to be different than the previous one. The survey of consumer expectations was released by the Federal Reserve of New York. The biggest monthly decline in inflation fears has been reported this week.
According to the survey, consumers think inflation will fall to 6.2% over the next year. Businesses hiking prices in response to what they anticipate the economy to look like in the near term is one of the consequences of that drop.
The steady and visible fall of gas prices, which peaked in June at a national average of $5.02 per gallon, is believed to be the reason for those expectations. Consumers were reminded of inflation when they needed to fill up their cars until the prices began to decline.
The price of gas today is $4.01. It was brought down so much.
Gas prices have been a sore spot for President Joe Biden, who has seen his approval ratings decline as Americans feel less positive about the economy.
The issue was largely out of his control because the price of gas was tied to the price of oil. He tried to keep prices under control.
He criticized the oil company executives for making record profits while not increasing production enough to meet demand.
He said that many factors contributed to the business decisions to reduce refinery capacity. At a time of war, refining profit margins are not acceptable.
This is a time of war and global peril, and my message to the companies running gas stations and setting prices at the pump is simple, I repeat, this is a time of war and global peril.
The idea of a three month national gas tax holiday was proposed by Biden. Analysts said the holiday wouldn't reduce prices much. Several states enacted their own.
The Department of Energy said in a statement that the White House coordinated the release of federal emergency oil reserves to address the global supply disruption caused by the war in Ukraine.
How much of the drop in gas prices was due to those efforts and how much was due to the decline in crude oil is not known.
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