Tyler Schipper, associate professor of economics in the College of Arts and Sciences at the University of St. Thomas, spoke to media outlets on the increase in gas prices and the effect the Iran war will have on overall inflation and the economy.
From KARE 11:
The Bureau of Labor Statistics says the consumer price index rose 2.4% in February from last year, unchanged from January.
The data does not include the impact of the war in Iran, according to St. Thomas economics professor Tyler Schipper.
“Next month’s CPI report will show the increase in gas prices. I think to some extent, there might be some upward pressure in some categories. I think we might see it in the airline prices, for instance. We might also see it in some of the grocery store prices. Those would be the categories that I would immediately be going to to think about if this has continued to ripple through the economy,” Schipper said. ...
“The longer the conflict goes on, the more likely we are to see those ripple effects to the economy, and that could get picked up in overall inflation, especially in some of those subcategories,” Schipper said. “It would be unlikely to affect things like rent and shelter, especially not on this very short one-month time horizon, but there will be individual subcategories that we could certainly pick up inflationary effects.”
From KTVU:
Schipper: Part of the reason why gas is pretty quick moving is what we see with global oil prices. Think about there being a delay of anywhere from a few days to a few weeks, but typically gas stations are pricing their gasoline based on what they expect to pay for the next shipment, not what is already under the ground at the gas station.
When we see these high headlines about oil prices, that is not months down the road, that is weeks down the road.
