According to the latest figures from the American Automobile Association (AAA), US gasoline prices climbed $5 per gallon on Monday.
The national average of US regular gasoline is at $5.014 per gallon which is up by 0.07% from Sunday’s $5.01. It took a record up the movement of 3.06% from last week’s average of $4.865 per gallon.
On monthly basis, a rise of 13.13% has been seen from $4.432 and on yearly basis, an increase of 62.9% has been observed from $3.078 per gallon.
If we talk about the highest prices of US gasoline, California reached $6.436 per gallon followed by Nevada at $5.657.
The fast and record increase in prices is building inflation pressure on the world’s largest economy. The annual consumer prices also got increased to 8.6% which is the largest jump in more than 4 decades,
In order to control the side effects of inflation, the FED raised interest rates by 25 and 50 basis points in March and May respectively. It is also expected that additional 50 basis points will be increased on coming Wednesday and in July as well. As Christopher Waller already talked about interest rate hikes.
As US gasoline prices climbed more than $5 per gallon, would it be bearable?