US gasoline average drops below $4 a gallon
The national average price of regular gasoline fell below $4 a gallon on Tuesday for the first time since July, reaching $3.98 according to AAA. The average is down from $4.15 a week earlier and $4.37 a month earlier. Diesel stands at $6.15 a gallon. A Labor Department report showed consumer prices rose 0.4% in October, with rising housing costs accounting for about a third of the increase. Prices remain about 20% above the seasonal average.
Key facts
- Patrick De Haan, GasBuddy petroleum analyst, says the national average could reach $3.70 to $3.75 by Thanksgiving.
- Energy prices rose 0.7% in October after a 5.2% surge in September, per the Bureau of Labor Statistics.
- Brent crude briefly fell below $90 a barrel for the first time since August.
- Federal Reserve Governor Christopher Waller warned energy shocks may have more persistent inflation effects than before the pandemic.
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Why it matters
Lower fuel costs may ease pressure on household budgets, while inflation data and Federal Reserve remarks point to lingering price risks.
What changed
First published from NPR, OilPrice.com and CNBC