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Inflation Just Dropped Thanks to a Massive Plunge in Gas Prices

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Just when everyone got used to prices going up forever, energy costs took a sudden nose dive.

After months of freak-outs over energy spikes caused by conflict near the Strait of Hormuz, overall consumer prices actually dropped by 0.4% in June. That was driven by the biggest single-month drop in energy costs in over six years.

Gasoline is still sitting way higher on an annual basis, but the sudden monthly plunge beat all Wall Street forecasts. Meanwhile, new Federal Reserve Chairman Kevin Warsh told Congress that getting monetary policy right is his main target to crush inflation.

A single good month on energy bills does not magically fix five years of expensive groceries, but it buys everyone a rare breath of relief.

Nothing brings Wall Street and everyday drivers together quite like a sudden discount at the pump.

Source: Bureau of Labor Statistics

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5/24
  1. Black-Friday Quarterbacker
    still paying $5 for a load of bread though
    +5 solidA classic reminder that while the gas pump might be merciful, the bakery is still holding our wallets hostage