U.S. gasoline prices fall, signaling possible easing of inflation pressure

U.S. fuel prices have fallen for three weeks, sparking hopes that the days of 3-dollar-a-gallon gasoline have come to an end and relief to consumers is on the way, The Wall Street Journal reported on Saturday.

After peaking at three dollars early last month, the average price of a gallon of regular gasoline dropped another penny Friday to 2.79 dollars, the reported quoted the automobile club AAA as saying.

That is the largest three-week drop since November. Wholesale prices in the futures market suggest the price is going to drop even further -- to 2.50 dollars or so a gallon over the next several weeks, a report by Citigroup said.

"It's pretty clear that we're going to see significant relief on the gas-price front," says Haseeb Ahmed, U.S. economist at J.P. Morgan Chase & Co. in New York. "This is a very important development because it frees up a lot of spending resources."

Source: Xinhua