Gas prices have an outsized impact on inflation
Provo, Utah — Russian invasion of Ukraine hit the world economy at a time it was already rocked by pandemic inflation.
According to BYU economist Christian vom Lehn, that’s especially true when it comes to gas prices.
“The price of gas has increased by about $1.50 nationally, and about $0.75 to $1 of that happened prior to the invasion of Ukraine,” vom Lehn said.
According to vom Lehn, the volatility of gas prices has an outsized impact on current inflation. Gas prices are volatile and will likely fall as supply chain issues ease, he said.
“The good news is much of the pain will be temporary and not long-lasting,” said vom Lehn.