Have you been at the gas pump recently? If you have then you must already be aware of the slow by steady decline in gas prices. Gas prices had surged past $5 a gallon nationwide sometime around the middle of June, leaving the working class wondering how they were going to survive the inflation. Carpooling, biking, walking, or city transportation became widely considered by the lower income earners as they tried to navigate through another storm in the US economy. However, before the end of June, gas prices were gradually declining. According to Julia Fanzeres of Bloomberg US Edition, gas prices had a 60% surge, which is the fastest pace in over 40 years.
Prior to declining, the soaring prices of gas had a ripple effect on consumer prices for food and everyday supplies. The Labor Department released data in the middle of July which showed how the spike in energy prices affected almost half of the overall gains in the consumer price index. The increase was from 1.3% from May and up to an astonishing 9.1% from a year prior, meanwhile, the gasoline index surged 11.2% from the previous month, hence the largest increase since March of 1980.
President Biden did everything to change the course of the surging gas prices as he lobbied with allies in the Middle East to increase their oil output. Now that those rising gas prices are cooled a bit for the time being, it is almost as if Americans were handed another unexpected economic stimulus. “Since hitting a record of $5.02 a gallon on June 14, the national average price for regular gas is down $1.10, or 22%, to $3.92, according to analysis made by New York CNN Business Insider, Chris Isidore. The $1.10 reduction in gas prices is equivalent to almost $100 savings per month, for the average America household.
So, how are Americans not celebrating this economic relief? It’s hard to say considering this savings is at the expense of our everyday supplies. Food and consumer goods had a significant increase in prices when gas prices were surging a couple of months ago. Now that the gas prices have come down, consumers goods prices continue to remain the same. Unless other consumers good such as food and everyday supplies goes back down, the so-called $100 a month tax-cut would not be celebrated as it should.