After months of gas prices making life more expensive, they have quietly started to go down — providing financial relief for many Americans.
The average nationwide price this week was $4.49 a gallon, down from a peak of $5.01 in June. The average price of gas is still about $1.30 higher than it was a year ago, but it has now fallen for more than a month.
Since gas prices fall more slowly than they rise, they still have room in the coming weeks to drop further — to catch up with reduced oil prices, said Christopher Knittel, an economist at M.I.T.
And as strange as it may sound, a weakening economy could help further reduce gas prices. The Federal Reserve has recently increased interest rates, raising the cost of borrowing in an effort to pull down demand and tame inflation. That could lead to more unemployment, but also to a slowdown in price increases after months of record inflation.
Beyond a few weeks, the future of gas prices is less certain. “There are still risks out there,” said Rachel Ziemba, an energy expert at the Center for a New American Security.
Read the full story and more from The New York Times.