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Tuesday, March 5, 2024

Inflation. The price of gasoline in the US exceeded $ 5 a gallon

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The average price of gasoline in the United States surpassed $ 5 a gallon for the first time, according to data from the American Motor Association (AAA), cited by Reuters. The agency adds that this prolongs the increase in fuel costs, which is fueling rising inflation in the US.

The consumer price index rose by 1 percent in May. and in annual terms it reached the level of 8.6%. – the Bureau of Labor Statistics (BLS) reported on Friday. Meaning that inflation peaked since December 1981.

Inflation in the US

As reported by the office, the main factors driving inflation were energy prices, food and rents, which during the month increased by 3.9% and 1.2% respectively. and 0.6 percent Excluding energy and food, the CPI increased by 0.6%. in May and by 6 percent. within 12 months.

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The May rise in inflation followed a slight slowdown in price growth in April, associated with a temporary, as it turned out, decline in the value of crude oil. In the last 12 months, gasoline in the US has increased by 48.7 percent, and food by 10.1 percent.

High prices for drivers come at a time when major oil and gas companies record record profits. In May, Shell posted a record quarter and Chevron Corp. and BP published their best results in a decade.

Exxon gas stationPAP / EPA / JIM LO SCALZO

In reaction to high inflation last week the Federal Reserve has raised interest rates by 0.5 points and – as reported by the Wall Street Journal – it will probably decide on a similar rate hike next week.

President of the USA Joe Biden On Wednesday, he called inflation “the bane of our existence” and stressed that fighting it was a top priority in his domestic politics. Treasury Secretary Janet Yellen said on Thursday that inflation was at 8 percent. It is unacceptable”. At the same time she admitted that the decline gasoline prices it is unlikely in the near future. She also added that although she expects weaker economic growth this year, contrary to some forecasts, she does not expect a recession.

Main photo source: PAP / EPA / JOHN G. MABANGLO

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