From Blairsville to Hayesville, the Bill That Hurts Most is Gasoline

Prices across extreme northeast Georgia and far-western North Carolina have settled into a narrower squeeze: cheaper they are not, but the pain is now concentrated at the pump and in a few grocery staples.

Consumer prices in the South, the Bureau of Labor Statistics region that includes Georgia and North Carolina, rose 3.2 percent in the 12 months ending in July. That is up from 2.3 percent a year earlier and down from a 3.9 percent peak in May. There is no separate index for Union and Towns counties in Georgia or Clay and Cherokee counties in North Carolina.

Energy is driving the increase. Gasoline in the South was 26.4 percent higher than a year earlier; regular unleaded was up 27.1 percent. A $50 fill-up in July 2025 would have cost about $63.20 at that rate.

Statewide pump prices remain below the national average but well above last summer. AAA put regular gasoline at $4.09 a gallon nationally on Aug. 28, compared with $3.21 a year earlier. Georgia averaged $3.79; North Carolina averaged $3.75. Diesel in North Carolina has recently run about $5.50 a gallon, more than $2 higher than a year ago. AAA said August is on track to be the most expensive August at the pump on record, with crude oil still near $80 a barrel amid volatility around the Strait of Hormuz.

That hits mountain households harder than city ones. Most workers here drive, two-car households are common, and trips between Blairsville, Young Harris, Hiawassee, Hayesville and Murphy add up.

Groceries have risen more slowly. Food prices in the South were up 2.7 percent over the year; grocery-store prices rose 2.3 percent and restaurant meals 3.4 percent. A $200 grocery trip from last July would cost about $204.60. Those yearly gains look modest next to 2022’s double-digit spike, but prices have not fallen. Shoppers are still paying far more than they did five years ago.

The Agriculture Department expects food-at-home prices to rise 2.5 percent in 2026 and 2.1 percent in 2027. Beef is the outlier, forecast up 9.8 percent this year. Fresh vegetables and nonalcoholic beverages are also expected to outpace the grocery average. Georgia and North Carolina sit near the national grocery average and do not tax most unprepared food.

Incomes here lag state averages. Union County’s median household income is about $66,200; Towns County’s is near $59,000. Average weekly wages in early 2025 were $950 in Clay County and $906 in Cherokee County. Statewide wages in North Carolina grew 4.1 percent from 2024 to 2025, faster than that year’s inflation, but that does not erase a $1 jump in gasoline.

Federal Reserve officials in June projected inflation of 3.6 percent in 2026 and 2.3 percent in 2027. USDA trimmed its 2027 grocery forecast. Private forecasters generally expect relief if oil eases from this year’s levels. AAA says pump prices will stay sensitive to overseas events.

For the average household from Blairsville to Hayesville over the next 12 months, grocery inflation should stay near a normal 2 to 2.5 percent unless weather or cattle supplies intervene. Gasoline and diesel remain the swing factors — the first place a break in crude oil, or another disruption, would show up.