KC Fed, Report: Gasoline Prices Unlikely to Bring Down Inflation in 2023

“In sum, a decline in gasoline prices when inflation is high can have an outsized effect in lowering consumer inflation expectations, as it did late last year. However, no further relief at the pump is expected in 2023. If gasoline prices remain relatively stable through 2023, as expected in January 2023, they are unlikely to deliver additional support in returning inflation back to the Fed’s 2 percent target.”