Lower CPI : Fuel prices VS Interest hikes
Given the lag in the transmission of higher interest rates in the economy, I am wondering whether the main driver behind the lower Consumer Price Index (CPI) numbers is primarily linked to fuel prices rather than monetary policy. This consideration arises from the observed high correlation between lower oil prices and a decline in year-to-date inflation. Such a correlation puts the entire policy into question.
Do you agree/disagree?
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