Monday, November 10, 2014

Gas Price Down, Food Cost Up

TAMPA, FLA (PR) — Motorists saw prices continue to plunge at the pump last week. The national average price for gasoline fell for the 42nd consecutive day Sunday. Meanwhile, the streak of declines is 37 days in Florida, 38 in Georgia, and 39 in Tennessee.

"Cheap gas prices couldn't come at a better time as millions of Americans make travel plans for the holiday season," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Prices are the lowest in four years, which should influence more people to take a trip, drive farther, or drive instead of fly."

The average price is below $3 a gallon in 26 states including Florida, Georgia and Tennessee. South Carolina has the cheapest average price in the country at $2.68. Tennessee has the 2nd cheapest average at $2.70. Georgia and Florida have the 13th and 20th cheapest average prices at $2.84 and $2.81 respectively.

The U.S. shale boom continues to have a major impact on the market. Domestic oil production is the highest on record, which dates back to 1983. West Texas Intermediate oil, the U.S benchmark, fell below $79 for the first time since June 2012. The price for a barrel settled at $78.65 on Friday, a $1.89 decline from last week.

The national average price for a gallon of regular unleaded gasoline is $2.93, a 6 cent decline from last week. Since last week, the Florida average of $2.91 fell 5 cents, the Georgia average of $2.84 slipped 3 cents, and Tennessee's average price of $2.70 fell 4 cents.   

The Costs of Groceries and Salaries

The low price on the pump doesn't reflect better price for products in the groceries stores and the salaries for most Americans aren't improving either.

For the first time in a long period the price of milk, in some places over $5, is more expensive than gas. Organic food prices are prohibited for people just earning the minimum wage and having to feed 4 or more members per family. 

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