Energy Volatility Complicates The Inflation Outlook But This Isn't 2022

2026-04-24 08:16:00 ET

Inflation Pressures Build, But Starting Point Matters

Back-and-forth developments over the weekend around the Strait of Hormuz have added near-term volatility to energy markets. That uncertainty is feeding into oil prices and reinforcing questions about how persistent energy-driven inflation pressures could become, particularly if disruption risks continue to ebb and flow. Although the March U.S. core inflation data was a touch softer than consensus expectations, near-term core inflation could continue to rise amid the geopolitical tensions. While energy prices do not directly enter core inflation, second-round effects are already expected to emerge through channels such as transportation and services. For instance, many airlines have already begun raising airfare and checked baggage fees to offset higher jet fuel costs....

Read the full article on Seeking Alpha

For further details see: