It’s true that the real price of oil is lower than in past episodes of oil price jumps. Moreover oil consumption constitutes a smaller share of US GDP than in previous episodes of oil price jumps. However, if one wants to discuss “shocks”, in part one would want the surprise or non-predictable component of oil price use. Approximately (I think for oil), that’s the change in the oil share, as shown below.
Author Archives: Menzie Chinn
Price Levels and Implications of the PPI Release
Headline, Core PPI above Bloomberg consensus (1.4% vs. 0.5% m/m; 1.0% vs. 0.3% m/m).
Grocery Prices (and Forecasts)
As of the April 2026 CPI release:
Price Levels Relative to January 2025
Everyday prices outstripping measured CPI and subindices:
Real Hourly Wages for April
Using today’s CPI release:
Anticipating Real Hourly Wages for April
CPI deflated and using AIER “Everyday Price Index”:
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Real Gasoline Prices Are (Relatively) Low; Gas Prices Are Rising Sharply
Both can, and are, true:
Hassett: GDP Growth “north of four, north of five, north of even six [percent]”
From FoxNews:
Strait of Hormuz Reopening Odds: Down Again
From Kalshi, 7:45pm CT:
Guest Contribution: “Does the Yield Curve Still Predict Recessions? U.S. and OECD Evidence”
Today, we’re pleased to present a guest contribution of Mufan Chen (University of Wisconsin).