A lot of discussion this year has been about whether easy monetary policy is offsetting the drag from the sequester.
But this is another factor that’s serving as a tailwind for the consumer: dropping gasoline prices.
The average U.S. retail gasolineprice fell to the lowest level since January as refineries increased output in the Midwest, easing supply fears.
Gasoline prices averaged $3.496 a gallon today, down 8.1 cents from the previous week and the lowest level since Jan. 28, according to data from the U.S. Energy Information Administration. The average price is 14 cents higher than it was this time last year.
Here’s a 5-year chart which shows the general trend of lower and lower peaks, as well as the fact that gas prices are at their lowest level of the year.
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