Gasoline reaches new record in the United States

Gasoline prices at service stations across the United States hit a new record on Tuesday, as President Joe Biden says fighting inflation is his administration’s “top priority” domestically.

On Tuesday, the average price of a gallon (3.78 liters) of gasoline reached US$4,374, according to the AAA drivers’ association. It thus surpasses the previous record of last March 11, after the Russian invasion of Ukraine and the beginning of sanctions against Moscow, when it stood at US$ 4.33.

The average price of a gallon of gasoline a year ago was US$2,967. “The cost of gasoline follows the increase in crude oil prices, at a time when the world seeks to find an alternative source of supply to Russian oil,” said Andy Lipow of Lipow Oil Associates.

“Tools” against inflation

In March, inflation reached 8.5% in 12 months in the United States, according to the CPI index on which pensions are indexed.

The skyrocketing of gasoline and food prices due to the war in Ukraine, contributes greatly to the general increase.

Without these two more volatile items, core inflation also reaches 6.5%, and remains at a 40-year high. Meanwhile, in the same month, the underlying PCE (personal consumption expenditure) index was 5.2% year-on-year, and 6.6% if all prices are considered.

The Federal Reserve, the US central bank that sets interest rate policy, takes the PCE as its guide.