Should the oil barrel reach the $120 mark come the end of the month, the Consumer Price Index could tickle the 9% barrier in the upcoming weeks —trespassing the estimated 8% peak.
According to the NYT, Goldman Sachs’ analysts anticipate that a $10 per barrel increase could push inflation up by nearly a fifth of a percentage point. Similarly, it has the power to dent the growth of the U.S.’ gross domestic product by almost 0.1 percentage points.
“The growth hit could be somewhat larger if geopolitical risk tightens financial conditions materially and increases uncertainty for businesses,” analysts wrote.
