This week's inflation data displays the impact energy prices can have on the indices. Sharp rises in gasoline and other energy products led to unwelcome gains in overall price levels. These will probably be viewed as "transitory" and unlikely to shake investor confidence in the ultimate taming of inflation.
I do have to wonder what will happen with energy prices if global demand takes a turn higher (an unexpected recovery in Asia?) while OPEC+ tightens supply. Even a "transitory" price surge would undoubtedly shake consumer confidence and could have profound impacts.
Energy Prices Impacting Inflation
