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Inflation concerns up, gas prices down since Inauguration Day

(The Center Square) – One month since President Donald Trump took office, gas prices are down in Michigan.

According to AAA’s Michigan average on Thursday, the current average for regular unleaded is $3.08 a gallon.

Mid-grade comes in at $3.60, premium at $4.16, and diesel at $3.57.

Compared to a month ago on Inauguration Day, those prices are down by a slight 2%. Compared to a year ago, they are down significantly, when regular unleaded came in at $3.19.

AAA predicts that gas prices in the state will likely continue to decrease.

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“Michigan motorists are seeing lower prices at the pump,” said Adrienne Woodland, a AAA spokeswoman. “If crude oil prices fall, alongside low demand, gas prices may continue to drop.”

Michigan’s gas average is actually lower than the national average of $3.17, breaking the trend of the past few months of the state coming in higher than the national average.

While there hasn’t been a significant decrease in gas prices since Trump took office, the prices do seem to be weathering concerns about the impact of potential tariffs, which Michigan Democrats have been raising flags about.

“Tariffs raise prices on the people, not the countries they’re imposed on,” said Michigan Secretary of State Jocelyn Benson, 2026 gubernatorial candidate, on social media. “Michiganders already struggling from high costs will be forced to pay more in the grocery stores and at the gas pump. We should be fighting to lower costs, not raise them.”

Though not directly impacting prices, the threat of tariff wars does seem to be having an impact on overall consumer sentiment.

The national Survey of Consumers, conducted by the University of Michigan, found that consumer sentiment in February fell for the second straight month, dropping about 5% to reach its lowest reading since July 2024.

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Year-ahead inflation expectations also jumped up from 3.3% in January to 4.3% this month, signaling “a perception that it may be too late to avoid the negative impact of tariff policy” and that “many consumers appear worried that high inflation will return within the next year.”

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