The price for a gallon of regular unleaded gasoline fell three cents over the past week, however the current price is still roughly 20% higher than it was just one year ago.
As of this morning, the national average price of gasoline stood at $2.65 per gallon, down from $2.68 a week ago, but up from $2.48 a month ago. At this time last year, the national average gas price was only $2.24 – and eventually bottomed out around $1.50 in early 2009.
Alaska ($3.33) and Hawaii ($3.32) are currently the only states with an average gas price above $3 per gallon. Missouri ($2.47), South Carolina ($2.47), Louisiana ($2.46), Oklahoma ($2.45), and Wyoming ($2.38) are currently the only states with an average price below $2.50 per gallon.
Much of the recent jump in gasoline prices can be attributed to the declining value of the dollar and the run up in commodity (specifically oil) prices.
With last week’s report showing U.S. unemployment at 10.2% – the highest level since the last major recession in 1982 – it’s clear that the world economy will remain weak for some time. This should help to keep inflation tame, and keep jumps in the price of oil and gas relatively mild.
However, should gasoline and oil prices continue on their steep climb, we could see the economy and labor market take a very nasty turn for the worse.