Gas prices have risen by 18 percent since the beginning of the year, significantly higher than the 4.6 percent average increase in the overall Consumer Price Index over the same time period, and nearly six times the annual inflation rate for August, squeezing household budgets.

The Bureau of Labor Statistics recently released the Consumer Price Index for August of this year. The report found that the overall annual inflation rate for August was 3.7%. According to the report, the index for gasoline was the largest contributor to the overall increase. 

Gas prices have increased substantially since the beginning of this year. Per the Federal Reserve Bank of St. Louis' FRED database, on a monthly basis, average price per gallon of all gas formulations rose from $3.223 the week of January 2, 2023, to $3.807 the week of September 4, 2023, representing an increase of 18.1 percent.

According to data published by the US Inflation Calculator, the average rate of annual inflation over the period of January 2023 to August 2023 is 4.52%.

An analysis by The Conference Board U.S. found that consumer confidence fell from July to August 2023. Dana Peterson, Chief Economist at the Conference Board, stated that responses to their survey “showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular,” and noted that “[t]he pullback in consumer confidence was evident across all age groups—and most notable among consumers with household incomes of $100,000 or more, as well as those earning less than $50,000.'"

According to the Bureau of Labor Statistics' most recent annual consumer expenditures survey, the average consumer unit spent $3,120 on gasoline, other fuels, and motor oil in 2022. That marks a 45.3 percent increase over 2021.

The Biden Administration, which in March 2022 announced a plan to release oil from the Strategic Petroleum Reserve in order to offset rising gas prices and reduce pain at the pump, drained the nation's reserves to 350 barrels.