While headline inflation held steady in July, tariffs appear to be hitting some imported goods like furniture and audio and video products, according to the latest consumer price index report from the Labor Department.
One source of relief for consumers? Prices at the pump. The latest CPI report shows July prices were down 2.2% from June and 9.5% from the year prior. The national average for a gallon of regular unleaded as of Aug. 12 was $3.14, according to AAA, down from $3.44 a year ago.
Prices could continue to slip in the months ahead as the weather cools and oil production ramps up.
"Gas prices are lower than they were a year ago. That has really persisted this year and given some confidence to the consumer to feel a little bit more wealthy at a time when there’s inflation everywhere else," said Matt Smith, an oil analyst with commodity data firm Kpler. "They're definitely providing, and should provide, a bit of a respite going forward."
The best way to describe gas prices so far this year? "Steady," especially when compared to recent years with dramatic swings like 2022, according to AAA spokesperson Aixa Diaz.
