Friday, November 19, 2021

About Gas Prices

Paul Krugman posted a graph that I wish I had thought of:

Everyone is complaining that gas prices are high, and they are for the last few years, but they really aren't for the last 10 years or so, when adjusted for inflation:

This is weekly data on gas prices from EIA's This Week in Petroleum, adjusted for inflation via the Consumer Price Index. Gas prices were high during the Bush Jr administration -- probably a feature, not a bug -- and then after the financial crisis. 

But it appears, from Krugman's graph, that presidents don't have much, if any, influence on gas prices -- they're set quite deterministically from the price of oil. 


Layzej said...

"adjusted for inflation"

Inflation hasn't been this high since the early '80s. It's not quite right to say "don't worry about gas prices because everything else is unaffordable as well."

David Appell said...

No, I'm not saying don't worry about gas prices. But adjusting for inflation....