Earlier this year Republicans were eager to promote the idea that inflation was out of control and the Biden Aministration was on its way to “hyperinflation”. According to economists, the traditional definition of hyperinflation is “inflation in excess of 50% per month, continuing over multiple months”. According to the modern day GOP, “hyperinflation” is anything which exceeds the Fed’s target rate of 2% annual inflation. Anything less than 2% annual inflation is derided as “a deflationary spiral and war on savers”, and inflation of exactly 2% is “an economy stuck in the doldrums because it’s being strangled by out of control government socialism”.

Republicans seemed to think they had a real winner with the inflation line when gas prices popped up to around $3.55 per gallon earlier this year, and are now doubt devastated that gas prices are now inching downward. According to the AAA gas prices website, the nationwide average for 87 octane unleaded has declined to $3.36/gallon as of Saturday December 4th. That represents a 3 cent per gallon decline in the previous week.

RBOB gasoline futures, which indicate the price paid by gasoline distributors prior to the addition of gasoline taxes and retail markups closed at $1.96/gallon on December 3rd. It is important to remember that the RBOB price is prior to any State or Federal taxes, distribution costs, and retailer markups. The Federal Gasoline tax is 18.3 cents per gallon. New York state’s gasoline tax is 46.19 cents per gallon (the 9th highest in the US), and distribution and retail costs typically run from 30 to 45 cents per gallon, suggesting a retail price range for January of around $2.91 to $3.16 per gallon.

Once again Republican rhetoric over “hyper-inflation” has proven to be nothing but ridiculous hysteria, and reckless hyperbole.