Economy, Gas Prices | featured news

Consumer prices were flat in June as the cost of gasoline dropped, offering some relief for cash-strapped Americans and scope for the Federal Reserve to ease monetary policy further to help the faltering recovery.

Consumers have caught a break from the slowing economy as gasoline prices extended their steep three-month decline, but the cost of filling the tank may soon head back up, a widely followed survey said on Sunday.

Americans can't seem to shake their uneasy feeling about the economy. Consumer confidence fell in June for the fourth straight month as worries about the economy outweighed relief at the gas pump, according to a private research group.

The slowing economy could provide a bright spot for consumers: gasoline at $3 a gallon — or less — by autumn.

U.S. retail sales declined in April and May, pulled down by a sharp drop in gas prices. But even after excluding volatile gas sales, consumers barely increased their spending... Americans did spend more in May on big purchases. Sales of cars, furniture and appliances all increased. That suggests consumers may be gaining more confidence in the economy.

Oil prices plunged as bleak reports on U.S. job growth and manufacturing heightened worries about a slowing global economy. Benchmark oil fell $3.49 to $83.04 per barrel Friday.

What only weeks ago was seen as a serious threat to the economic recovery could now turn into a stimulus everyone can love. Oil and gasoline prices are sinking, giving relief to businesses and consumers who a few weeks ago seemed about to face the highest fuel prices ever.

For the majority of the country, $4 gas isn’t going to doom us or our economy. Here’s why.