What Oil Prices Reveal About the Economy

Energy prices are falling, but perhaps for the wrong reasons.

An aerial photo of the Bryan Mound Strategic Petroleum Reserve, an oil storage facility in Freeport, Texas, on April 27, 2020. Adrees Latif/Reuters

Commentary

U.S. inflation cooled in February, with the consumer price index (CPI) rising by a less-than-expected 2.8 percent year over year. Excluding food and energy, core CPI rose by 3.1 percent year over year, as costs for services such as shelter and transportation continued to grow at mid-single digits. What kept CPI growth muted was the ongoing decline in energy prices around the world.