Tyler Schipper, associate professor of economics and data analytics at the University of St. Thomas, spoke with CNN about how the war with Iran is driving a surge in oil prices and contributing to rising inflation. Schipper noted that while the initial impact is most visible at the gas pump, the effects are expected to spread to other categories over time.
From the article:
Even before the war, inflation was running higher than normal, kept elevated by tariff-related price hikes on goods as well as still-strong consumer demand, to a lesser extent, on services.
“There are fast-moving and slow-moving effects of an oil price shock, and some of those effects … aren’t there yet,” Tyler Schipper, associate professor of economics and data analytics at the University of St. Thomas in St. Paul, Minnesota, told CNN.
“The good news is that with a shock like this, there’s no reason to suspect that this reignites a surge in inflation,” he added. “The bad news is that consumers should still expect there to be cost increases in other categories.”
And that tariff-related inflation is still there. The oil price shock has just been layered atop it.
