Economic Letter
Brief summaries of SF Fed economic research that explain in reader-friendly terms what our work means for the people we serve.
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Consumer Vibe Check: Gas Prices and Inflation Expectations
Taerin Kim, Yeji Sung
According to household surveys, inflation expectations tend to move together with expectations for gasoline price changes. The relationship is not symmetrical, though: Inflation expectations rise when households revise up their outlook for gas price growth but change little when they revise it down. This pattern is strongest among lower-income and less-educated households. Analysis also suggests…
