Inflation in the U.S. has decreased from a year-over-year rate of 9.1% in June 2022 to 2.4% recently, largely driven by falling energy prices.
The recent energy price drop, with gasoline falling 15.3% and fuel oil 22.4%, is crucial as these costs significantly influence discretionary income for many households.
Economists are concerned about high oil prices following the Russian invasion of Ukraine, which previously pushed crude prices over $100, leading to fears of inflation and recession.
Consumer spending, which constitutes two-thirds of GDP, is heavily influenced by energy prices, making low energy costs a vital element for economic stability and lower inflation.
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