CNN’s Yurkevich: Gas Price Decline Due to People Driving Less over Previous High Prices, ‘Fears of a Recession’

On Monday’s broadcast of CNN’s “Situation Room,” CNN Business and Politics Correspondent Vanessa Yurkevich stated that the fall in gas prices is due to declining oil prices which is being caused by “fears of a recession, but also because, over the summer, when gas prices were so high…people weren’t driving as much. So, that demand for gas shifted downwards.”

While discussing declining gas prices, Yurkevich said, “and this is all happening because we are seeing lower prices of oil, and that’s on fears of a recession, but also because, over the summer, when gas prices were so high, Wolf, people weren’t driving as much. So, that demand for gas shifted downwards. And this is coming, as you mentioned, on the eve of this CPI report, that’s that key inflation report that we’ve been tracking. Gas prices coming down are going to be making an impact. Experts estimate that we’re going to see a month-over-month drop in inflation. That’s because gas and energy [make] up so much of that report, Wolf. And this is really a signal to the Federal Reserve, which is scheduled to meet next week. They are expecting to make an aggressive interest rate hike, but if we keep seeing these falling gas prices and these cooling CPI reports, we could see the Federal Reserve, Wolf, start to pull back on these aggressive interest rate hikes. ”

Follow Ian Hanchett on Twitter @IanHanchett