Fed research looks at second-round effects of oil price inflation
Late 2022 oil price rally could cause inflationary pressure as late as mid-2025, paper finds
Oil prices will put upward pressure on inflation in advanced economies into the first quarter of 2024, research published by the Federal Reserve Board finds.
Second-round effects of oil prices rally in the third quarter of 2023 could cause inflationary pressure “as far out as mid-2025”, the paper finds. This could have the effect of “potentially slowing the disinflation process in train,” say Harun Alp, Matthew Klepacz, and Akhil Saxena.
A 10% increase in oil prices raises the energy consumer
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