For the first time since late last year, prices at the pump are now higher on a year-over-year basis. It's a trend that industry experts expect to continue in the coming weeks and months, especially if Russian oil facilities continue to get hit by drone attacks.
This is an unwanted development for consumers heading into the spring. It's also a problem for White House and Federal Reserve officials hoping to declare victory over inflation.
The recent jump in gas prices is already causing headaches on the inflation front. Gas was the main culprit behind last week's hotter-than-expected consumer price index and a disappointing wholesale inflation report.
All of this is casting doubt on when the Fed will be able to start cutting interest rates. Hopes for a March rate cut have faded, and investors are now betting on June or July.
"Gas prices are going to keep going up," said Andy Lipow, president of Lipow Oil Associates. "This is going to cost the consumer more money. And that of course is not good for the administration."
The national average price for regular gas climbed to $3.47 a gallon on Monday, according to AAA. That's up from $3.45 a year ago and the highest price since Halloween.
The last time gas prices were up on a year-over-year basis was late December 2023, according to AAA.
The highest recorded price for unleaded gas was in June of 2022, when a gallon averaged $5.02, according to AAA.
The national average has jumped by seven cents in the past week and 19 cents over the past month. Gas prices are up by 40 cents since mid-January.