NEWS
Inflation Ticked Up Again in August, Fueled By High Gas Prices
Courtesy of chiefnitro/Instagram
Inflation picked up again in August, thanks largely to rising gasoline prices, according to the Consumer Price Index report released Wednesday by the Bureau of Labor Statistics.
Consumer prices rose 0.6% in august, after rising 0.2% in July, the agency said. Prices in august were 3.7% higher year-over-year, before seasonal adjustment.
The agency said that gasoline was the largest contributor to the increase, accounting for more than half the jump in prices. The overall energy index increased 5.6% in August, as all the major energy component indexes increased.
Another major contributor to the increase was the shelter index, which rose for the 40th consecutive month, the agency said. The food index increased 0.2 percent in August, the same rate as in July.
The index for all items minus food and energy rose 0.3% in August, after a 0.2% increase in July. The index rose 4.3% over the last 12 months.
According to auto club AAA, the national average price for a gallon of regular unleaded gasoline on Wednesday was $3.85, up about 15 cents from one year ago. Washington State and California on Wednesday saw average gas prices over $5 per gallon, with all of the western states seeing prices over $4 per gallon.
“Americans are being squeezed at the tank and it’s hitting them hard. Alongside increased grocery prices, car prices, and energy prices, more and more families are having to make more and more cuts,” said personal finance coach Lisa Chastain.
According to Forbes in July 2023 the average American salary is $59,428 — that’s roughly just under $5000 a month before taxes. With increased prices in gas, in addition to living costs, they are being tasked with making difficult decisions,” Chastain said.
“The cumulative effect of rising gas prices is consumers feeling squeezed across the board, resulting in less discretionary spending. Increased energy prices are causing a domino effect in American households, but driving is still a top need,” Chastain said.
“The big three of extreme heat, less oil production, and a rise in crude oil cost are really hammering people at the gas pump. People forget that when we have consistently hot weather oil refineries struggle work at maximum capacity,” said Ted Jenkin, founder and CEO of Atlanta-based oXYGen Financial.
“It’s impactful that Gov. [Brian] Kemp here in Georgia temporarily removed the state gas tax. It will save families .31 cents to .35 cents a gallon, which could mean the difference of making that extra bill in your family finances,” Jenkin said.
TMX contributed to this article.
