San Fran Fed letter highlights impact of oil prices on inflation expectations


The price of oil has a "strong" impact on inflation expectations in the US, the UK and Japan, according to an economic letter published by the Federal Reserve Bank of San Francisco.

The letter, written by two of the central bank's researchers, argues the costs involved in processing information "tend to make consumers update their inflation expectations infrequently" when inflation is relatively stable.

Moreover, when the consumers do update their expectations, they are likely to do so through

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