World Economy

Gasoline Slips Below $4 as Fuel Market Eases, but Broader Price Pressures Persist

Gasoline prices fell below $4 a gallon Tuesday for the first time in three months. Regular unleaded has dropped 38 cents over the past month to average $3 nationally, according to AAA data. The decline reflects lower crude oil costs, refineries' transition to cheaper winter fuel blends, and seasonal demand softening as temperatures cool. However, broader inflation remains elevated. The Labor Department reported a 0.4% monthly increase in overall consumer costs, exceeding economist forecasts. Housing expenses drove roughly one-third of the monthly gain, while grocery prices climbed sharply. Diesel fuel has fallen more slowly, averaging $6.15 per gallon and down 13 cents monthly. Despite recent improvements, fuel costs remain about a dollar a gallon higher than when this time of year occurred previously.