Gas falls below $4 but inflation stays high

Petrol prices drop below four dollars

The average price of regular gasoline dipped below four dollars a gallon Tuesday for the first time in three months, according to AAA. The price has fallen 38 cents in the last month.

“The average price of regular gasoline dipped below $4 a gallon Tuesday for the first time in three months, according to AAA.”

But overall inflation stays stubbornly high

Consumer prices in October were up zero point four percent from the previous month, according to the Labor Department. That is a bigger monthly increase than forecasters had expected.

Housing and groceries drive the rise

Rising housing costs accounted for about a third of the monthly increase in consumer prices. Grocery prices were also up sharply during the month.

Why petrol prices are falling

The drop is thanks to falling crude oil prices, refineries switching to cheaper winter fuel, and typical seasonal drop in demand.

“by Thanksgiving, so long as we don't get any wild cards geopolitically, the national average could be $3.75 a gallon.”

Diesel and heating oil stay elevated

Diesel prices have fallen more slowly than petrol.AAA says the average price of diesel fuel is six dollars fifteen a gallon, down about thirteen cents from a month ago.

Higher freight costs ripple through economy

Higher diesel prices are driving up heating oil costs in the northeast and freight costs for goods moved by truck, train or cargo ship.

“We've seen it show up notably in goods that are heavily imported, apparel, recreation goods, IT equipment.”

Federal Reserve may raise rates more aggressively

Federal Reserve Chris Waller suggested energy shocks could have more lasting effects on inflation than previously thought.