more fun economic news

Gas prices hit new record, following oil
By JOHN WILEN, AP Business Writer
10 Apr 2008
NEW YORK - U.S. retail gas prices extended their record run Thursday, adding to the pain consumers feel every time they fill up. Experts predict prices will rise even higher as peak summer driving season approaches.
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At the pump, the national average price of a gallon of gas rose 1.4 cents overnight to a record $3.357 a gallon, according to AAA and the Oil Price Information Service. Prices have set a string of records in recent weeks, and are 56 cents higher than a year ago.

Retail diesel, the fuel of trucks and other heavy vehicles, rose overnight to a new national record of $4.045 a gallon.

Note: energy costs do NOT figure in "core inflation" - so the real inflation consumers are experiencing is higher than the official 4% currently reported. Food prices, too, are excluded from "core inflation" - but those record diesel prices will almost certainly be felt by consumers at the supermarket as the cost of transporting food to market increases. More and more of our expendable $$$ is going to gas & food, leaving less for the new TV, Friday night out at fancy restaurant, or new dress.

The Fed, meanwhile, continues to aggressively cut the prime rate in hopes of stimulating economic recovery... pretty much conceding defeat against inflation, at least for now.

Have a nice day.