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Expectations for Gasoline Prices and Inflation: Evidence from Households

Author

Listed:
  • 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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    References listed on IDEAS

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    1. Coibion, Olivier & Gorodnichenko, Yuriy & Kumar, Saten & Pedemonte, Mathieu, 2020. "Inflation expectations as a policy tool?," Journal of International Economics, Elsevier, vol. 124(C).
    2. Lutz Kilian & Xiaoqing Zhou, 2022. "Oil prices, gasoline prices, and inflation expectations," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(5), pages 867-881, August.
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    5. Binder, Carola Conces, 2018. "Inflation expectations and the price at the pump," Journal of Macroeconomics, Elsevier, vol. 58(C), pages 1-18.
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