Gas Prices: Retail gasoline prices have been extremely volatile since 2000. Average national gas prices have ranged from a low of $1.13 per gallon in 2001, to a high of $5.03 per gallon in 2022. During the period of 2014 through 2021, gas prices stabilized, averaging less than $3.00 per gallon. However, in mid- year 2022, gas prices spiked to a high of $4.75 per gallon. Since that time, gas prices have declined to an average $3.60 per gallon in 2024. Forecasts predict that gas prices will average near $3.20 per gallon in 2025. Looking Ahead: U.S. economic activity expanded at a solid pace in 2024, and the Federal Reserve Board projects continued GDP growth in 2025 at a slightly slower rate of 2.1% relative to the estimated 2.4% in 2024. Maryland’s economy continues to grow but is lagging the U.S. The Bureau of Economic Analysis estimates the state’s Real GDP growth rate of 3.0% annualized through the third quarter of 2024 versus 3.1% for the nation, an improvement in the relative differential from 2023 of 1.6% versus 2.9%, respectively. National unemployment was 4.1% in November 2024 and is expected to remain low in 2025 at 4.3%, though a slight weakening from the 3.7% rate in November 2023. Maryland’s November 2024 unemployment rate of 3.1% was lower than the nation. Given the proximity to Washington D.C. and the number of federal workers residing in Maryland, federal government tax and spending decisions remain an elevated risk to state GDP and employment.
I-95 Express Toll Lanes
Inflation: Since 2000, the Consumer Price Index has averaged about 2.6 percent growth per annum. From 2007 to 2016, the rate of inflation in the District of Columbia Metropolitan Statistical Area closely tracked the U.S. rate. However, from 2016 to 2020, the U.S. inflation rate was slightly higher than the District of Columbia Metropolitan Statistical Area. In 2022, annualized rates for U.S. inflation ranged from 7.1 percent to 9.1 percent, with an annualized average of 8.0 percent. Through November 2023, the annualized average inflation rate has been 3.2 percent. In 2024, the Federal Reserve is projecting a decline in the U.S. Personal Consumption Expenditures inflation rate to 2.4 percent.
22 | Maryland Transportation Authority | Introductory Section
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