Annex Wealth Management Economist Discusses Impact of Rising Gasoline Prices on CPI

Annex Wealth Management's Chief Economist, Brian Jacobsen, commented on April 10 that while he anticipated a rise in overall CPI due to increasing gasoline prices, the actual data was surprising. According to Jin10, Jacobsen noted that there is currently no evidence of high energy prices affecting core inflation. He explained that this process might take time to manifest, as businesses are likely to absorb most of the initial impact. In a way, consumers cutting back on other discretionary spending could potentially lower core inflation rather than increase it.