(Bloomberg) — Gasoline prices have surged to a record high for this time of year in the US, jeopardizing the fight against inflation that’s dogged President Joe Biden.
Average regular gasoline now costs $3.866 a gallon, a seasonal record on a trailing-12-months basis, according to data from the American Automobile Association. Prices have risen by 7.8% in just eight weeks in a rare late-summer rally.
Read More: Why Are US Gas Prices Going Up? When Will They Fall?
The gains have been driven by increases in the price of oil, which jumped about 20% in the past two months. Top analysts from International Energy Agency and Organization of Petroleum Exporting Countries have warned of a crude-market deficit through end-2023, underpinned by the extension of production curbs by Saudi Arabia and Russia.
Gasoline costs already accounted for over half of the increase in the August consumer price index. The continued escalation will likely stoke inflation further while eroding consumer confidence.