Rising Gas Prices: What It Means for Inflation and Markets

Rich Stoeckel | 03.31.26

Key Takeaways

Gas prices have increased quickly, putting pressure on household budgets and discretionary spending.
Only about half of the price at the pump reflects crude oil, with other costs making up the rest.
Rising energy prices can impact inflation and interest rate expectations, creating short-term market volatility.

Why Gas Prices Are Rising

Gas prices have risen sharply in recent weeks, affecting household budgets, inflation, and financial markets. In this video, Associate Portfolio Manager Rich Stoeckel explains what’s driving the increase and why maintaining a long-term investment perspective remains important.

Rapid Price Increases

Gas prices have risen by more than a dollar per gallon in the past month. Even though prices remain below 2022 peaks, the speed of the increase can strain household budgets.

What Drives Gas Prices

About half of gasoline prices reflect crude oil costs, while refining, transportation, distribution, and taxes account for the remainder.

The Broader Economic Impact

Inflation and Interest Rates

Higher energy costs contribute to headline inflation and can influence Federal Reserve decisions, including interest rate expectations.

Staying Focused Long Term

Energy price spikes can create short-term market volatility, but maintaining a disciplined, long-term strategy remains essential.

Meet the author

Rich Stoeckel

Rich has experience with major firms in the finance industry, including J.P. Morgan in Chicago and with New York Life in their Manhattan office. He holds degrees from Loyola University in Chicago (BBA ’21, MSF ’22) and is working towards completion of the CFA charter. As associate portfolio manager, he works directly with Tyler to align client’s capacity and willingness for investment risk with long-term investment goals.

Rich believes strongly in leading by example, and in the power of small actions that can make a large difference. He enjoys helping people reach their goals and opening doors to different possibilities.

Outside of the office, Rich enjoys reading and writing about various philosophy topics, being introduced to and composing new music, volunteering for Crisis Text Line as a Crisis Counselor, and strength training at his local gym.