U.S. drivers see gasoline prices fall for seven consecutive weeks after hitting record prices in June , with some relief at the pump. But there is both good news and bad news behind the gas price drop, experts say.
The average price of a gallon of gasoline fell to $4.14 per gallon on Thursday, down 8 cents per gallon on Monday alone, according to AAA. The drop marks a significant step back from his all-time high of $5.02 a gallon set on June 14.
Gasoline prices are increasing and lower oil prices are a major determinant of pump costs, according to Ellen Wald, a senior his fellow on the Atlantic's Council on Gasoline Production. .
But Wald said there was another reason for the decline, which could indicate broader economic problems. there is. Deal with inflation.
"We've seen some of what we call 'demand disruption' where people are choosing not to buy gasoline because it's so expensive," Wald said. he told CBS News, adding that "we are at risk of a global recession." may lower the price. ''
The US economy shrank in the second quarter,marking his second consecutive quarter of GDP contractions. This is often seen as a feature of depression. But that's not the whole picture considered by the National Economic Research Service, the group that officially determines whether the US is in recession. The NBER is looking at a number of other economic indicators, including employment, which continues to perform well this year.
Nonetheless, economists are increasingly concerned about signs that consumers are cutting back on spending to cope with the recession, and contracting GDP is likely to sparked debate about whether the economy has entered or is headed for recession.Highest inflation in 40 years.
Meanwhile, experts say gasoline prices could continue to fall, at least in the short term. . Gas Buddy analyst Patrick De Haan said the national average could fall to $3.99 a gallon within days.
"[I]in 100 hours the national average will see him drop to $3.999 a gallon. This is his lowest since March 5th." Yes, it's the first time," De Haan wrote on Thursday. "By then, some stations in the US could go as low as $2.99 a gallon."
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