“One striking feature of the current situation is that while firms that are impacted by higher oil prices have only passed through a portion of the increased costs in the form of higher prices, should oil prices rise further and remain elevated, that pass-through increases to roughly 90 percent. This suggests that in an environment of sustained higher cost pressures, firms may be unwilling or unable to absorb any more costs,” said Atlanta Fed economist Brent Meyer. View the full results >
How Are Higher Oil Prices Affecting Firms?
Between the onset of the Middle East conflict on Feb. 27 and the fielding of The CFO Survey on May 17, crude oil prices increased $41 per barrel. When asked about the impact of higher oil prices, two-thirds of firms noted higher unit costs and one-third reported increasing their prices. This suggests that at least some firms are absorbing these costs, rather than passing them through to customers. Read more in Research & Commentary >
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