""It's painful in the near term," said Michael Pearce, chief U.S. economist at Oxford Economics. "It's going to get more painful in April," when further gas price increases will lift inflation higher."
""I think the conditions are much more like a short, sharp shock than what we saw in 2022," Pearce said, suggesting the impact may be shorter-lived than after the pandemic."
""I think the impact could fade by later this year," indicating a potential return to more stable inflation levels."
Gas prices experienced the largest monthly increase in six decades, contributing to a 3.3% rise in consumer prices in March. This spike, influenced by the Iran war, particularly affects lower- and middle-income households, straining their budgets. Core prices rose 2.6% year-over-year, indicating that the gas price surge has not yet broadly affected other categories. Economists suggest that while the current inflationary pressure is significant, it may not lead to a prolonged inflation spike like in 2022, with expectations of a potential easing later this year.
Read at Fast Company
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