Gasoline Prices Soar
John Kemp from Reuters released a quality report today on the gasoline rise in America and national travel.
In the US we have seen a shift to larger SUV style cars due to cheaper gas - in part. When gas surges customers trade in cars and buying habits transition to more fuel efficient cars. This effects car manufacturers sales as well as inland freight costs for hauling other goods. Data suggests this could lead to inflation in the market. - CH
“Cheap gasoline provided a significant stimulus to driving during the latter part of 2014 and throughout 2015 but the impact has faded as average pump prices have climbed back towards $3 per gallon”