New Yorker Josh Kirben kept a close eye on his gas purchases, trying to make more money by only partially filling his tank.
But these days, he fills it all the way to the top.
The decision shows millions of Americans are feeling better financially as gas prices fall to their lowest level in three years, helping to limit rising costs of living. .
According to official statistics, the inflation rate (price increase rate) in the United States rose slightly to 2.7% last month. Despite the rise, the price increase is much slower than in June 2022, when Russia’s invasion of Ukraine caused turmoil in global oil markets and caused a spike in fuel prices.
Although economic indicators have shown progress in recent months, dissatisfaction with the economy remains high, with rising prices in other areas such as housing overshadowing broader improvements.
The issue played a key role in the US presidential election, contributing to Donald Trump’s re-election to the White House last month.
However, surveys now show that public opinion on the economy is finally starting to brighten, due in large part to Trump supporters, some of whom have increased confidence in Mr. Karven following the former president’s election victory. Suggested.
“I would say I feel more confident than I did two months ago,” said the 36-year-old property manager. “I hope Mr. Trump does something.”
Ironically, the improvement in sentiment comes at the same time that progress on prices appears to be stalling.
Inflation was expected to be 2.7% in November.
However, it was up from 2.6% in October and the highest level since July.
Gasoline prices fell 8.1% compared to 2023, but rose 0.6% from October, and food prices rose 0.5% in the same month.
Prices of used cars, furniture, and medical care also rose.
The situation concerns how President Trump will fulfill his promise to lower prices for Americans, and what the U.S. central bank should do next as it wants to keep inflation at around 2%. This raises questions.
“Inflation is steadily coming back into focus in the U.S.,” said Lindsey James, investment strategist at Quilter Investors.
“This is partly due to the lack of progress over the past three months, but also due to concerns that increased U.S. government spending and President Trump’s tariffs could create a further inflationary backdrop.” said.
In September, the US central bank cut interest rates for the first time in more than four years, citing progress in price stability.
Many analysts still expect officials to announce further rate cuts at this month’s meeting, but unless price increases in areas other than gasoline begin to ease more significantly, next year’s rates will be lower than previously expected. It warns that prices are likely to remain high.
That’s a conclusion that comes as no surprise to Americans like Greer Bowen.
The 48-year-old was diagnosed with cancer in 2017 and now relies on disability benefits from the government, but she says her expenses have soared in recent years and she has not been able to keep up.
The situation is being helped by lower gas prices, but the savings aren’t enough to offset higher costs elsewhere, she said.
“You can save it here, but now you have to reassign it somewhere else,” she said.
Bowen said she thinks President Trump will try to change things, but she’s still not convinced he’ll make changes for the better.
“That hasn’t been decided yet,” she said.
