(Bloomberg) — One of the few bright spots in otherwise dour US inflation data — lower gasoline prices — already has dimmed.
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In an effort to pivot focus away from core inflation that climbed to a four-decade high, the Biden administration seized on lower energy prices, even though they didn’t factor into the data. The small dip in fuel prices was seen as signs of positive momentum in the president’s efforts to ease consumer pains.
“I think it’s important to look at this monthly data in context — we are seeing some progress,” Brian Deese, President Joe Biden’s top economic adviser, told Bloomberg TV.
But the reprieve at the pump was short-lived and looks likely to worsen as refiners contend with repairs and maintenance work that will impact fuel production at a time when inventories already are stretched.
Pump prices have been marching steadily higher since touching a six-month low last month and have climbed almost 7% in the past four weeks. In fact, for the first time since early August, consumers are facing the prospect of a $4 average retail price, according to AAA.
This month alone, the average retail gasoline price is up 3% while benchmark futures have risen at more than twice that rate.
(Adds advance in gasoline futures in final paragraph)
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