Economist: This One Market Move Could Ignite Inflation

A leading economist warns the biggest risk to inflation is not found in the latest consumer price index. Instead, the threat lies in a surge of oil and commodity prices, which could drive up costs across the economy. While the June CPI report showed cooling price pressures, the economist argues that energy markets remain volatile. A sudden spike in crude oil, for example, would raise transportation and production costs, quickly feeding into higher prices for goods and services. This external shock, the economist says, poses a more immediate danger to price stability than any domestic data point.