Prices at the pump, while still high, are nowhere near where they were at their peaks over the summer, and now prices across the country are seeing seven-month lows.
The national average for the cost of a gallon of gas is currently $3.70, down 26 cents over the last month, and 7 cents over the last week, according to AAA.
National averages are not only down $1.30 from the all-time high of $5 set in the middle of June. They are currently the lowest they have been since the beginning of March.
The price decline is also not expected to slow as AAA has shared that demand tends to drop following Labor Day weekend, meaning more areas could soon be below the $3 mark.
But, as previously stated, prices in other areas continue to climb despite the decline in gas prices, resulting in an increase in inflation last month.
The Bureau of Labor Statistics reported on Tuesday that inflation rose in August by 0.1%, with shelter and food prices being the main factors for the increase, CNBC reported.
Economists were expecting the 0.1% to go in the other direction, but thanks to a 0.8% increase in the food index in August and a 0.7% increase in shelter costs, predictions were wrong.
According to Kelley Blue Book, the average price paid for a new vehicle in America in August hit an all-time record at $48,301, marking the fifth consecutive month car prices have risen to new records.
Part of the reason for high prices is a strong demand for vehicles with low inventories, which has pushed prices to an 11% increase compared to a year ago.
However, there is some light at the end of the tunnel, as Rebecca Rydzewski, a research manager of economic and industry insights for Cox Automotive, shared with Kelley Blue Book that “New-vehicle inventory levels have been rising through August, now reaching the highest level since June 2021.”
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