The embargo on Russian energy supplies poses serious long-term challenges for the European Union. … READ MORE >
oil prices
Oil prices and price gouging: Deconstructing the price of gas
The impact of global market forces like the war in Ukraine and OPEC far outweighs whatever influence retailers or refiners have on the prices that consumers pay at the pump. … READ MORE >
The illusion of inventory and price controls in the current economy
Disruptions of supply chains have renewed calls for political authorities to do something about soaring prices. Is this the time for price controls? No. … READ MORE >
Life during wartime: Inflation, price controls and economic conflict
Today, with inflation at a 40-year high and a policy rate pinned to the zero boundary, policymakers face significant constraints as they try to find ways to mitigate rising costs on American households. … READ MORE >
Chart of the day: Consumer sentiment slides amid energy shock
Consumer sentiment slid further in March, falling by 3.1 points from February amid spikes in oil and gasoline prices. The University of Michigan sentiment gauge dropped to 59.7, an 11-year low, according to data released Friday. … READ MORE >
Consumer choice, self-rationing and preparing for shortages
The war in Ukraine, the cutoff of Russian exports and the possible removal of roughly 4.3 million barrels of crude from U.S. and European markets are likely to have a harmful impact on household balance sheets. … READ MORE >
Energy shock will hit low-income Americans the hardest
Despite such a significant price shock, the Federal Reserve should not overreact by hiking interest rates aggressively because the spillovers from higher energy prices on core goods and services will most likely be relatively small and fade quickly. … READ MORE >
The impact of an energy shock on Canada’s economy
Although high oil and gas prices had been good news for the Canadian economy over the past few decades, this time is different. … READ MORE >
Chart of the day: Wholesale gas prices Imply 10.4% Increase at the pump
Geopolitical tensions linked to Russia’s invasion of Ukraine have roiled oil markets around the world. The global Brent crude benchmark has traded around $115 per barrel and the domestic West Texas Intermediate benchmark stood at $112. A year ago, those prices hovered around $60. The elevated levels translate into rising … … READ MORE >
U.S. consumers spend more in January, defying inflation
Personal spending rebounded in January even as inflation rose at the highest rate in decades. … READ MORE >