Prof G Markets · Wednesday, July 15, 2026
The US currently has the highest inflation rate in the G7, a situation exacerbated by its market-based energy pricing, which passes through oil price fluctuations directly to consumers. Mark Zandi suggests that a lack of competition in various industries might also be contributing to stickier inflation, as companies face less pressure to lower prices.
“Just looking at the US inflation rate compared to other nations. We currently have the highest inflation rate in the G7, which is quite interesting because it seems as though we've been sheltered from what was happening to oil prices as a result of the Iran war. But now, I guess, that's not really the case.”
“I think that goes to the fact that most other countries provide subsidies or regulate the price of energy. They don't let it pass through. The Europeans don't let it pass through.”
“The US is very different in that, as soon as the oil prices go up, our cost of gasoline, diesel, jet fuel goes immediately up.”
“The other thing that might be going on, and this is a little, uh, more problematic is, lack of competition. You know, competition in different industries has eroded over time.”
“Increasingly, the number of industries are dominated by a few companies that can set prices more significantly or are able to hold their pricing for longer in the face of weakening demand or slower costs of doing business.”
“And so that lack of competition, which I think occurred over the years, and has become more pronounced now, maybe also playing a role in the higher rates of inflation that we're seeing here and the fact that inflation might be more sticky here, because businesses are under less pressure to cut prices because of the lack of competition or the lesser lessening of competition.”