Gas prices fell 10.6% during August. Here’s why it’s not a relief from inflation.
Investors got a rude awakening with Thursday’s hotter-than-expected inflation numbers, and the decline in gas prices since June may have contributed to their sense of shock.
It was a disappointing set of numbers at a time when economists were forecasting a 0.1% decline month-over-month that would have taken the year-over-year rate to 7.9%. Consumers were also expecting more price moderation ahead, including gas costs, according to a Monday consumer expectation survey from the Federal Reserve Bank of New York.
“Americans saved on gasoline, but paid more for just about everything else in August,” according to Katherine Judge, an economist at CIBC Capital Markets. “Diesel is not as much in the limelight as gasoline,” and it may be one “missing piece” to remember as people try getting their heads around why costs keep climbing, De Haan said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD to test August 10 high near 1.0370 on a clean breach of 1.02 – BBHEUR/USD has traded as high as 1.02 earlier. A break above here would open up a move towards 1.0370, economists at BBH report. European Central Bank st
Read more »
Japan to Reopen to Tourists Despite Record Covid-19 Cases in AugustJust 245,900 foreign tourists visited Japan in 2021, the lowest number since records started in 1964.
Read more »
U.S. stocks gain ground as investors await August inflation readingThe positive mood from the last several days - which helped Wall Street snap a three-week losing streak - was continuing into the new session.
Read more »
Online prices rise in August as food, apparel lead gainsE-commerce price gains returned in August, led by the increasing costs of groceries and apparel. Shoppers have spent $580 billion online so far this year.
Read more »
US: August CPI to show consumers received further relief – Wells FargoOn Tuesday, key inflation data is due in the US. The August CPI print will be watched closely by market participants ahead of the next FOMC meeting to
Read more »
Americans' inflation expectations dropped again in August, New York Fed saysThe New York Federal Reserve released a new survey on Monday revealing that American households expect inflation to cool slightly over the next three years.
Read more »