Here’s a chart based on the weekly gasoline price update from the Department of Energy with an overlay of Light Crude, which closed today at 94.64, a new interim high. Gasoline prices at the pump continue to rise. Regular is up 1.56% and premium 1.36% since last week’s update. As I type this, West Texas Light Crude futures are trading at 95.63 and Brent Crude futures at 106.46. The faster acceleration of the latter is primarily a result of the greater potential impact on Europe of the crisis in Libya.
The price increases in crude oil and gasoline were reflected in the latest Consumer Price Index data for January. For additional perspective on how energy prices are factored into the Consumer Price Index, see What Inflation Means to You: Inside the Consumer Price Index.
Doug Short Ph.d is the author of dshort.com.
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