Skip to main content

Higher oil prices not a huge risk to consumers

The surge in gasoline prices in recent days will only add to the drag on households purchasing power from fading stimulus and higher inflation over recent months. But with consumers able to cushion the blow in the near term by reducing their saving, we think oil prices would need to rise much further from here to seriously threaten the consumer recovery. For the broader economy, any hit to consumption should be mostly offset by greater investment in shale production.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access