Inflation in the United States: the price of gasoline has reached $ 5 a gallon, a record that has never been reached

The price of a gallon of gasoline (equivalent to 3.78 liters) in the United States hit $ 5 this Saturday, a record never achieved before, and this happens when the country is experiencing the highest inflation of the last forty years.

As released Saturday by the Federation of Automobile Associations AAA, the average price of a gallon of fuel at gas stations across the country was $ 5,004 this Saturday, something that has never happened beforeYes

AAA analysts also predict that the price of gasoline will continue to rise during the summer months.

A year ago, in June 2021, the average price of a gallon of gasoline (the measure used by gas stations in the United States, instead of a liter) was $ 3.07, which is practically two dollars below the current.

In 20 of the 50 states of the United States, prices are above $ 5 a gallon, especially on the west coast of the country.

Yesterday it was learned that inflation in the United States jumped in May to the highest rate in 40 years, 8.6%, a new increase in consumer prices that was mainly pushed due to the sharp increase in energy. The monthly increase in consumer prices between March and April was 1%.

The data released Friday by the US Bureau of Labor Statistics. it was above analysts’ expectations and ended with the truce in April, when the rate recorded its first decline in seven months.

The new escalation makes the already foreseeable new half-point hike in interest rates by the Federal Reserve (Fed), which meets next week, more likely.

The historical increase in consumer prices is mainly driven by the increase in energy prices and also, albeit to a lesser extent, due to rising housing and food prices.

Energy prices (gasoline, crude oil, electricity and gas) have increased by 34.6% in the past twelve months, driven by the price of crude, which has grown by 106.7%, the largest annual increase recorded by this statistic. since it started being produced in 1935.

Food prices, for their part, increased by 10.1% on an annual basis – the increase was greater in supermarket purchases, which increased by 11.9% – while those of food products in restaurants increased by 7.4%.

Rampant inflation forces people to pay far more for food, gas and rent and reduces the power to buy non-essentials, hitting low-income families – especially Hispanics and blacks – hardest because they have to spend more for basic necessities.

Economists predict a reduction in inflation this year, albeit not by much. According to the average estimates, the consumer price index could drop to 7% by the end of the year.

Polls show that for Americans, inflation is the number one problem, and most disapprove of President Joe Biden’s handling of the economy.

Source: EFE

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