Sharply lower prices for gasoline and used cars slowed US inflation in August for the second month in a row, though many other items rose in price, signaling that inflation continues to pummel American households.
The average cost of a gallon of gasoline has dropped for 13 straight weeks to $3.71 ($3.71) after hitting a record high of more than $5 in mid-June.
Gasoline prices vary by region depending on local economies, proximity to refineries and other factors, as is the case in California, where the average price is more than $5 due to taxes to reduce pollution, according to the Association. American Automobile Association (AAA) to the New York Times.
In West Coast states like Oregon and Nevada, the average price of gasoline exceeds $4 per gallon while in the south, in states like Louisiana and Mississippi, prices are close to $3, and in Texas the average price is $3.14, according to OPIS, Dow Jones & Co’s energy analytics, reported the Wall Street Journal.
An AAA survey at the end of last month it found that almost two-thirds of Americans had changed their driving habits due to high fuel prices.
Consumer prices rose 8.3% in August from a year earlier, the government said on Tuesday, still high but below a four-decade high of 9.1% reported in June.
Excluding volatile food and energy categories, so-called core prices rose 0.6% from July to August, more than many economists expected and a sign of persistent inflation.
Inflation remains much higher than many Americans have experienced and keeps pressure on the Federal Reserve, the agency tasked with keeping prices stable. The Fed is expected to announce another big hike in its benchmark interest rate next week, which will lead to higher costs for many consumer and business loans.
Inflation has increased families’ grocery bills, rents and utility costs, among other expenses, causing hardship for many households and deepening pessimism about the economy despite strong job growth and low unemployment.
With information from the Associated Press
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