U.S. gasoline prices near seasonal record highs pose new threat to inflation

Published: Aug 23, 2023 14:42
U.S. gasoline prices were close to a seasonal record high, which could offset the Federal Reserve's progress in curbing inflation. Regular gasoline is currently averaging $3.854 a gallon. While that was less than 5 cents lower than a year earlier, it was still the second-highest seasonal level since 2008, according to American Automobile Association.

U.S. gasoline prices were close to a seasonal record high, which could offset the Federal Reserve's progress in curbing inflation. Regular gasoline is currently averaging $3.854 a gallon. While that was less than 5 cents lower than a year earlier, it was still the second-highest seasonal level since 2008, according to American Automobile Association.

The end-of-season rebound was in the spotlight after a relatively mild May and June, with low inventories and refinery operations beset by record heat driving up prices. Last year, a record surge in gasoline prices pushed U.S. inflation to a 40-year high and forced many drivers to cut back on recreational driving.

At present, in the context of the impact of hurricanes in the Gulf of Mexico region where refineries are concentrated, the possibility of further rises in refined oil prices still exists.

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U.S. gasoline prices near seasonal record highs pose new threat to inflation - Shanghai Metals Market (SMM)