BofA: US Economy Less Vulnerable to Oil Shocks

BofA research finds US inflation rises only 25 bps from a 10% oil price shock, versus 40 bps in Europe.
Growth impact of a 10% oil shock falls to 5 bps in the US, but exceeds 10 bps in the Euro area.
BofA cut growth 30 bps, raised inflation 80 bps; Europe growth down 60 bps, inflation up 160 bps after 40% oil rise.
Europe’s oil sensitivity is double the US because energy comprises a larger consumption share and the region remains a net oil importer.