PLUNGING GASOLINE PRICES: The Average Drops Below $3

Today, for the first time in 4 years, retail gasoline prices will average less than $3 a gallon, according to the American Automobile association.. That’s down from this year’s peak of $3.696 in April.

Booming domestic oil production in states like North Dakota and Texas are playing a significant role. The surge in production will propel domestic output next year to the highest level since 1970, EIA forecasts show.

U.S. benchmark West Texas Intermediate oil fell $14.21 a barrel in the three months ended Sept. 30, , and on Oct. 27 it dropped below $80 to the lowest level in 28 months. North Sea Brent crude, the global benchmark, slid $17.69 a barrel in the same quarter to $94.67 and traded at $85.25 this morning.

This is What is Keeping the Lid on Consumer Price Inflation Indexes

The dramatic drop in gasoline prices is the result of the oil shale and fracking boom in the US.

Enjoy it while it lasts because the Federal Reserve is continuing to print huge amounts of new money, eventually the money printing will over power the price declines that are resulting from the gains in productivity.

Explain This Paul Krugman: Gas Prices at All-Time Christmas High

According to figures from AAA, the nationwide average for regular unleaded is $3.21 per gallon — an increase of 23 cents over last year’s Christmas record.

I'm sure Deflation Paul has an explanation.

(Thanks2BobMurphy)