Americans could face the highest gas prices ever for the Thanksgiving holiday season, as millions prepare to hit the road amid still-high prices and inflation.
The national average price of a gallon of gasoline is expected to hit $3.68 next Thursday, November 24, as Americans gear up for the holiday.
That number is 30 cents higher than the same time in 2021 and more than 20 cents higher than the previous high of $3.44 per gallon in 2012.
That doesn’t seem to be stopping holiday travel, however, with some people making Thanksgiving 2022 the first time they’ve visited relatives since the COVID-19 pandemic began in 2020.
According to industry analyst GasBuddy, about 20% more Americans planned to travel for the holidays.
While 62% of Americans don’t plan on driving on the roads for Turkey Day, only 21% say the cause is high gas prices.
Patrick De Haan, the site’s head of oil analysis, said: “Americans are proving that even though we openly complain about high gas prices, most of us aren’t deterred from hitting the highways for observe Thanksgiving with those who matter most to us, especially as pandemic precautions have eased.
GasBuddy says trips will be busiest between 11 and 11 a.m. and 2 p.m. on Wednesday before the public holiday and Black Friday morning between 8 a.m. and 6 p.m. and 11 a.m.
The news comes as Americans continue to struggle with inflation, with some cities and states coping better than others with the current crisis in the United States, according to the Bureau of Labor Statistics.
October statistics – the most recent available – show inflation at 7.7%. That’s down from the 40-year high of 9.1% recorded in June, though it continues to cause crippling increases in the cost of living for many Americans.
Meanwhile, several experts told Bloomberg on Thursday that they expected inflation to last at least another year.
They also warned that scaling back interest rate hikes too quickly could make the problem worse, convincing Americans the crisis was over.
They fear this will prompt them to loosen the springs of their stock market and cause prices to spike again as demand for goods and services soars.
A week ago, it was reported that inflation had moderated in the United States last month, a sign that the price increases that have hit Americans are easing as the economy slows and consumers are becoming more cautious.
Despite the good news, figures from the Bureau of Labor Statistics show that some cities are still considered hotbeds of inflation.
In October, Phoenix reported an inflation rate of 12.1% on certain goods. That’s down 0.9% from the city’s record 13% earlier this year.
Inflation is believed to hit the region the hardest, as Phoenix is also one of the fastest growing places in the country, which means food, gas and housing cannot keep up.
New Bureau of Labor Statistics data shows cities where inflation is hitting hardest
According to Redfin, the average price of a home in Phoenix rose 9% in September compared to the same period last year.
According to Redfin, the average price of a home in Phoenix rose 9% in September compared to the same period last year.
Jim Rounds, an economist and policy analyst at Rounds Consulting, told 12News of Arizona’s struggles: “These are unusual times and these are unusual conditions.”
“When the economy is in a mess and there’s a lot to fix, it just takes longer to fix. Arizona and the greater Phoenix area are just unique in that we are also experiencing high growth, which puts additional pressure on them.
Other cities struggling with high inflation rates include Atlanta, where prices rose 10.7% and Miami, where prices rose 10.1%.
Overall, the Republican-led states of Georgia and Florida saw prices rise at a rate of 8.3%.
This is the same number seen in South Carolina, North Carolina, Maryland, Virginia and West Virginia.
Moving west, Texas, Oklahoma, Arkansas and Louisiana are seeing slightly higher inflation, with 8.4% reported.
In the north, New York, New Jersey, Pennsylvania and Delaware reported rates of 6.8%, below the national average.
The consumer price index rose 7.7% in October from a year ago, marking the fourth consecutive month of decline from the 40-year high of 9.2% reached in June.
Core inflation, excluding volatile food and energy prices, fell to 6.3% on an annual basis, after hitting a four-decade high of 6.6% in September.
The numbers were all lower than economists had expected and Wall Street reacted positively, with the Dow Jones Industrial Average gaining 750 points, or 2.31%, at the open to hit 33,264.
Annual inflation in the United States remained stubbornly high at 7.7% last month, but fell for the fourth consecutive month
As the mortgage rate has risen and house prices have fallen, the US housing market has cooled significantly since the pandemic boom era. October home sale prices are not yet known as the mortgage rate has skyrocketed to over 7% for a few weeks
“Today’s CPI reading for October is a good sign for consumers who have struggled in recent months to absorb the continued pressure of inflation on household budgets,” said Scott Brave, head of economic analysis at the business intelligence firm Morning Consult.
Brave added that the latest report, along with other recent data, “suggests that households received a welcome respite from the sting of inflation last month.”
Used car prices, which soared last year as a shortage of computer chips sharply reduced the availability of new cars, fell 2.4% from September to October.
And prices for energy services fell, thanks to a 4.6% monthly decline in the price of natural gas utilities, as natural gas prices declined from recent highs.
However, gasoline prices rose 4% from September to October, reversing three consecutive months of monthly declines.
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