US Gasoline Prices Surpass $5 per Gallon for the First Time Ever... "Inflationary Pressure"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the United States struggles with the worst inflation in 40 years, the average price of regular gasoline in the U.S. has surpassed $5 per gallon for the first time ever.

According to the Wall Street Journal (WSJ) and others on the 11th (local time), oil price information company OPIS reported that the average price of regular gasoline in the U.S. exceeded $5 per gallon for the first time the previous evening. Prices vary by state, but in California, the average price reached as high as $6.43 per gallon the day before. In addition, regular gasoline prices in western states such as Arizona and eastern states including Ohio, New York, and Maine were recorded at over $5 per gallon.

One foreign media outlet reported, "Gasoline prices in the U.S. have risen by more than two-thirds over the past year and have more than doubled since the Biden administration took office."

The sharp rise in gasoline prices is expected to put further pressure on the U.S. economy, which is already experiencing the worst inflation in 40 years. According to the U.S. Department of Labor, the Consumer Price Index (CPI) for May surged 8.6% year-over-year, marking the largest increase since December 1981. JP Morgan forecasted in a report last month that U.S. gasoline prices could rise to $6.20 per gallon by August.

With the midterm elections approaching in November, President Biden is struggling to combat inflation. Especially after Russia's invasion of Ukraine, energy shortages have caused oil prices to skyrocket, raising calls for urgent improvement in relations with major oil-producing countries. Reports have emerged that President Biden will visit Saudi Arabia for this purpose, but he responded on the day, "I have not decided yet."