#inflation

#inflation

Fuel costs, inflation and debt pressures are testing Asian economies. Working from home. Fuel queues. Blackouts. This is the fallout from the war on Iran across Asia. Governments are scrambling to shield their economies from the worst of the energy crisis. Some are rationing fuel. Others are reintroducing subsidies or limiting exports altogether. And the longer the Strait of Hormuz remains disrupted, the worse it gets so much so for vulnerable economies.

The dollar index was under pressure on Wednesday as geopolitical fears abated amid calmer conditions in the Middle East, particularly after President Donald Trump signaled a temporary pause in naval operations around the Strait of Hormuz.

The national average price for regular gasoline now stands at $4.483 per gallon, up from $4.176 just one week ago. In less than two weeks, gas prices have surged 11%, putting them within striking distance of the all-time AAA record of $5.016 set on June 14, 2022.

Central banks are maintaining interest rates and borrowing costs steady despite rising energy bills and inflation pressures, which are squeezing businesses and households globally.

"Investors were braced for a disaster somehow, and instead they got a just a real good number," Cramer said.

"We see that beginning in late 2022, low-income households consistently faced higher inflation than middle- and high-income households did. Specifically, the lowest-income households have experienced inflation above the national average, restraining their spending."