A gallon of regular gasoline in New Jersey cost an average of $4.388 on Friday, AAA said. That is 38 cents more than a month ago and $1.22 more than a year ago. Diesel there averages $5.928 a gallon, up 60 cents in a month and $2.307 in a year.
The national picture is no kinder. AAA puts the US average at $4.295 a gallon, more than 40% higher than when the US attacked Iran in late February and oil shipping through the Strait of Hormuz was disrupted. Diesel, at $6.069 a gallon, is the highest average price ever recorded in the country.
What the August report showed
The Bureau of Labor Statistics released the Consumer Price Index on Friday. Annual inflation reached 3.4% in August. Prices rose 0.4% over the month, after just 0.1% in July.
Gasoline was the main driver. Its index climbed 3.9% in August, which accounted for more than one-third of the 2.1% monthly rise in the energy index.
It was not the only line moving. Shelter costs rose 0.3% on the month, after 0.1% in July. Food held at 0.1% in both months. Used cars and trucks gained 0.4% in August, the same as July, while new vehicles rose 0.3% after 0.1%. Major appliances went up 1.4%, airline fares 2.7% and wireless phone service 4.9%.
Twelve-month view
Over the past year, gasoline is up 27.4% and airline fares 23.4%, the CPI shows. Between July 2025 and August 2026, food rose 2.7%, shelter 3.0%, electricity 3.8%, piped gas service 4.4% and clothing 3.6%.
The report sharpened expectations of a rate rise from the Federal Reserve. The Federal Open Market Committee meets on Sept. 16. According to the CEM Fedwatch tracker of market expectations, the probability of an increase is now 86.9%, up from 60.4% a week earlier.
