Two-Way Fluctuations in Gasoline Prices Add Uncertainty to Wednesday’s CPI

On May 9, retail gasoline prices fluctuated sharply in both directions last month, which added some uncertainty to the April CPI to be announced by the U.S. Labor Bureau on Wednesday morning.

Volatility in fuel prices is usually a key factor affecting the overall CPI, which is expected to rise 0.4% month-on-month.

Gasoline prices surged 5% in the first few weeks of April and hit a 2023 high of $3.68 a gallon on April 23 after OPEC+ unexpectedly announced output cuts, according to AAA.

But recession fears and other concerns sent crude oil prices down at the end of April, and gasoline prices fell so quickly that gasoline prices ended April not much higher than they started.