Inflation is higher than expected in the U.S., but gasoline prices have fallen, according to the latest report. On Wednesday, the national average for a gallon of regular gasoline was $3.97. In Illinois it is higher, holding at about $4.43, and in Chicago drivers pay even more, at $4.83.
Experts say prices could fall further in the coming weeks, even as prices of other goods rise. “In the next two to three weeks, prices at some stations could drop to $3 a gallon, or perhaps even lower. That certainly applies to Indiana, especially the northwestern part of the state,” said Patrick DeHaan, head of fuel market analysis at GasBuddy.
The extended suspension of Indiana’s gas tax is costing the state more than $1 billion in lost revenue earmarked for roads and infrastructure. If it is not extended again, it will expire on Friday, Dec. 4. “The nationwide drop in fuel prices has nothing to do with the results of the Nov. 3 midterm elections. It is purely a matter of the season,” DeHaan added. “People spend less time traveling and being outdoors. That drop in demand is the main reason prices fall every autumn. On top of that, we have switched to cheaper winter-blend gasoline, and refineries are finishing their maintenance work,” the analyst noted.
Meanwhile, Steven Durlauf, a professor at the Harris School of Public Policy at the University of Chicago, says the lower prices do not mean that the prices of all other goods will fall as well. Last month, the U.S. Bureau of Labor Statistics reported higher-than-expected inflation, with consumer prices rising 0.4%. “Four-tenths of a percent in a month may not seem like a very large number. On the other hand, if we convert that to a full year, we are already talking about figures in the range of 4–5%,” Durlauf said. What does this mean for consumers? Unfortunately, that not only groceries but other products as well will get even more expensive.
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Source: Polski.FM
