In recent months, U.S. gasoline prices have risen significantly—because of both increased demand and increased production costs. Notably, but not surprisingly, oil prices have also increased. And although oil is a key input in the production of retail gasoline, oil and gas prices don’t always move in tandem. When oil prices shoot upward, gas prices rise with them. And when oil prices fall, gasoline prices also fall; but they can fall at a slower rate. Economists refer to this market dynamic as “asymmetric pass-through.” A more colorful description of the phenomenon is “rockets and feathers.” Our FRED graph plots the ... (full story)