Wednesday, May 09, 2012
The government lowered its forecast for average gasoline prices this summer to $3.79 per gallon.
The Energy Information Administration’s revised forecast is encouraging news for the economy. Some economists blame high pump prices for so-so consumer spending this year. They were seen as a factor in the loss of 35,000 retail jobs in February and March.
“It’s almost like a tax cut,” said Jared Bernstein, a senior fellow at the Center for Budget and Policy Priorities. EIA’s prediction means that drivers will spend about $10.7 billion less on gas than previously anticipated.
Read more at The Register-Guard.