California gas prices reach record high

Peninsula Premier Admin

California gas prices reach record high

Seven is often seen as a lucky number, but not this time. The consumer price index is up 7% in December from December 2020, that’s the highest rate of annual increase in inflation in almost 40 years since June of 1982. Even core prices, if you exclude volatile items like food and energy, Even then still the fastest pace of increase in almost 31 years. And what today’s report tells us, I think just validates what millions of households already knew and that is inflation is a problem. Prices are going up and they’re going up pervasively and they’re going up at a rate that outpaces growth and household income. In many cases, food prices are up over 6%. Energy prices up over 29 And shelter costs, which tend to lag already up over 4% year over a year. And I think that’s the one to watch in the months ahead. The Federal Reserve had what I would describe as a very lazy faire attitude toward inflation in 2021 and only at the end of the year did they really get the memo that this is a problem. And as a result, we’ve seen them pivot very quickly in terms of how they view it and how they plan to address it specifically. We will see the Feds start to raise short term interest rates. They’re likely to start that as soon as March and around that time or shortly thereafter, they will not only stop buying bonds and adding to their portfolio, they will start letting the size of that portfolio shrink, letting it run off. That has the effect of pulling liquidity out of the system. So even though that happens behind the scenes, I think that’s arguably the more significant item. Both of those will slow the demand side of the economy over time, but they’re not going to address nor fix the issues with the supply chain.

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California gas prices reach record high

California gas prices hit a record high of $4.72 a gallon on average this week.Experts say a whopping five dollars a gallon will likely be the norm in a matter of months.On the Central Coast, prices are slightly higher than the state average.Salinas sees $4.79 a gallon, Merced has gas prices at $4.74, and San Jose is coming in at $4.78 for a gallon of regular unleaded. But, that’s much higher than the nationwide average of $3.51 a gallon.Prices in California have long been among the highest, but they’ve soared in recent years in part because of changes at some West Coast refineries.State gas taxes and fees also contribute to California’s gas price cost. They’re about 68 cents a gallon, compared to the national average of 39 cents.| Related | Democratic leaders reluctant to halt California gas tax hike

California gas prices hit a record high of $4.72 a gallon on average this week.

Experts say a whopping five dollars a gallon will likely be the norm in a matter of months.

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On the Central Coast, prices are slightly higher than the state average.

Salinas sees $4.79 a gallon, Merced has gas prices at $4.74, and San Jose is coming in at $4.78 for a gallon of regular unleaded.

But, that’s much higher than the nationwide average of $3.51 a gallon.

Prices in California have long been among the highest, but they’ve soared in recent years in part because of changes at some West Coast refineries.

State gas taxes and fees also contribute to California’s gas price cost. They’re about 68 cents a gallon, compared to the national average of 39 cents.

| Related | Democratic leaders reluctant to halt California gas tax hike

Contributed by local news sources

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