Energy Prices No Longer Rising

To put recent changes in gasoline prices into perspective, during the first week of May 2011, prices at the pump averaged just under $4 per gallon. As recently as December 2010, pump prices were less than $3 per gallon and $2.70 per gallon in September 2010. Photo Credit NAHB

Perhaps the best news in this month's Consumer Price Index report was an end to the upward march in energy prices. CPI for energy fell 1 percent in May, ending 10 months of strong growth that yielded a 21.5 percent year-over-year gain.

Gasoline prices, which had been driving this strong growth, fell 2 percent in May. However, price levels at the pump remain 36.2 percent above their year-ago level, averaging $3.71 per gallon nationally (Department of Energy).

Department of Energy expects gasoline prices to shift down, but remain above $3.50 per gallon over the remainder of the year, before climbing again in early 2012. Although gasoline prices will remain at a high level, the moderate decline should help to stabilize CPI over the remainder of 2011.

- Courtesy of NAHB