Gas Prices

So gasoline prices are at an all-time high. But after adjusting for inflation, rising incomes and better fuel efficiency, how bad are they really?

The experts' answer: Bad. Nearly as bad as they've ever been, and not likely to get better anytime soon.

Adjusted for inflation, gasoline at $3.227 a gallon, according to AAA, is still about 18 cents below its peak of $3.405, set in March 1981, according to the Energy Information Administration. And Americans are spending about 6% of their total disposable income on energy, down from about 8% in 1982....

Now there are some studies that say it's not really that bad.

In 1980, the average American had to work 105 minutes to buy enough gas to drive the average car 100 miles, according to Beth Ann Bovino, a senior economist at Standard and Poor's. Now, the average American needs to work only 53 minutes, thanks to better fuel efficiency and higher wages.

"Even though it certainly doesn't feel so good at the pump, we're a bigger economy and we make more money," said Bovino...

For those hoping things will get better, there may be a while to wait. EIA predicts gas prices will remain above $2.70 a gallon until at least 2010.

read the CNN story

Look at the previous charts. The second version in the article is correct.