PRESS RELEASE: WHILE INFLATION SLOWS, HIGH FOSSIL FUEL PRICES SHOW NEED FOR CLEAN ENERGY INVESTMENTS
FOR IMMEDIATE RELEASE
May 12, 2022
TJ L’Heureux, Press Secretary
WHILE INFLATION SLOWS, HIGH FOSSIL FUEL PRICES SHOW NEED FOR CLEAN ENERGY INVESTMENTS
Experts Note Overall Inflation May Have Peaked, but Gas and Oil Prices Continue to Climb
WASHINGTON, D.C. — After the release of yesterday’s Consumer Price Index (CPI) report, economic experts are highlighting that overall inflation is trending downward. However, rising fossil fuel prices, like gas and oil, are expected to continue hurting Americans’ wallets.
The Roosevelt Institute’s Lauren Melodia and Kristina Karlsson released a report demonstrating that volatile fossil fuel prices are a key driver of overall inflation and that investing in clean energy could help Americans lower their bills.
Read below what experts are saying about this month’s CPI report, volatile fossil fuel prices, and the potential of clean energy as a price stabilizer.
Here’s what experts are saying about inflation:
Economist at Capital Economics, Andrew Hunter: “The falls in headline and core inflation in April should mark the beginning of a sustained decline.”
Chief Economist at LPL Financial, Jeffrey Roach: “Inflation has likely peaked. Investors and policymakers both know inflation will likely stay above target for a while, but both will focus on the direction of the change.”
Economist Professor at Northeastern, Robert Triest: “The Federal Reserve is taking actions to combat inflation, as they should. And importantly, in the longer-term, inflation expectations remain well-anchored. So I think in the short run, inflation is going to remain elevated. But then, in the long run, I expect the Fed to stick to its 2% target.”
Chief Investment Strategist at BMO Wealth Management, Yung-Yu Ma: “Under the hood, there continue to be signs that inflation, labor market tightness, and supply chain woes may all have peaked.”
Global Head of Research at StoneX Financial, Matt Weller: “If inflation prints at expectations, it would be the first meaningful decline in the annualized inflation rate since the depths of the COVID recession.”
Here are some facts about inflation and fossil fuels:
Fossil Fuel Price Volatility Significantly Contributes To Inflation
In March 2022, two-thirds of overall inflation (1.2 percent) was due to gasoline price increases.
In fact, the Roosevelt Institute report noted that two-thirds of “excess inflation over the past year has come from the weighted contribution of energy and cars alone.”
Renewable Energy Prices Are More Stable Than Fossil Fuels
The Roosevelt Institute report finds that the range of price changes for electricity is a quarter of the range of gasoline and about half of utility gas.
The US Energy Information Administration (EIA) predicts that residential gas prices will be 27 percent higher than last winter on average, while electricity prices will only increase by 4 percent.
A significant push toward 100% renewable energy would save Americans households up to $2,500 per year.
About Invest in America
Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.
The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.