The average price of gasoline, all grades, across the US last week – after surging for three months – exceeded the price in the same week a year ago for the first time since February 2022. According to EIA data this afternoon, the average price at $3.93 per gallon, was up by 1.7% from the same week in September a year ago ($3.86).
So this is the year-over-year percent change of the average price of gasoline on a weekly basis. And it’s another setback for the Consumer Price Index to come. “Disinflation” good bye. But we already said goodbye to “disinflation” with the July CPI.
The average price of gasoline had spiraled to +60% year-over-year in June 2022. Then prices plunged. By June 2023, the year-over-year drop bottomed out at -27%. And now, gasoline is up +1.7% year-over-year. The great plunge in gasoline prices was a major factor had caused CPI to cool 12 months in a row, from +9.1% in June 2022, to +3.0% in June 2023 – the infamous and now bygone era of “disinflation.”