When there’s a spike in oil (CBK26) prices, investors usually start to worry about pump prices, energy stocks, and airline margins. But according to Goldman Sachs (GS), this latest oil surge goes a whole lot deeper than gas station receipts. What we should really be worried about is inflation.
As the U.S. war in Iran drags on, economists at Goldman Sachs are warning that every meaningful jump in oil prices will directly push inflation higher here in America. They’re not speaking in hyperbole, either. According to the bank’s latest analysis, we should be prepared for inflation to jump by roughly 0.3% for each $10 increase in the price of oil.
