Today, the US Bureau of Labor Statistics released consumer prices for June 2022, saying that over the past 12 months, the all-purpose index jumped 9.1 percent—the fastest increase in consumer prices since November 1981.
The energy index rose 7.5 percent over the month and accounted for nearly half of the all-items increase, with the gasoline index rising 11.2 percent, according to the Bureau of Labor Statistics.
Commenting on the inflation data, President Biden said in a statement that “While today’s headline inflation reading is unacceptably high, it is also outdated.”
“Energy alone accounted for almost half of the monthly increase in inflation. Today’s data does not reflect the full impact of nearly 30 days of declines in natural gas prices, which have reduced the price at the pump by about 40 cents since mid-June. These savings provide significant breathing room for American families,” President Biden said.
He also vowed to continue doing everything he can to further reduce the price of petrol. As of July 13, the national average price of gasoline was $4,631 a gallon, down from a record high of $5,014 a month ago.
“I will continue my historic release of oil from our strategic oil reserve. I will continue to work with our European allies to put a price cap on Russian oil – reducing Putin’s revenue. And, I will continue to work with the U.S. oil and gas industry to increase production responsibly — already, the U.S. is producing 12.1 million barrels of oil per day and on track to break records,” the President said .
He also warned, once again, oil companies not to take advantage of gasoline prices.
“The price of oil has fallen about 20% since mid-June, but the price of natural gas has so far only halved. “Oil and gas companies should not use this moment as an excuse to take advantage of not passing on savings at the pump,” President Biden said.
By Charles Kennedy for Oilprice.com
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