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Expectations for Gasoline Prices and Inflation: Evidence from Households

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  • CONSTANTIN BÜRGI
  • PRACHI SRIVASTAVA
  • KARL WHELAN

Abstract

Gasoline prices are highly salient to consumers and, for this reason, they may have an outsized influence on their thinking about inflation. We examine how people's expectations about gasoline prices influence their expectations for overall inflation. We find little evidence from two U.S. household surveys that people overreact to their beliefs about expected gasoline prices when formulating their expectations about overall inflation.

Suggested Citation

  • Constantin Bürgi & Prachi Srivastava & Karl Whelan, 2026. "Expectations for Gasoline Prices and Inflation: Evidence from Households," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 58(2), pages 619-630, March.
  • Handle: RePEc:wly:jmoncb:v:58:y:2026:i:2:p:619-630
    DOI: 10.1111/jmcb.13260
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