Little Correlation Between Gasoline Prices and Inflation Until 2021
investigativeeconomics.substack.com
In testimony to the Senate Banking Committee in March, Federal Reserve Chairman Powell stated that every $10 increase in a barrel of oil leads to a .2 percent increase in inflation. That is, oil is inextricably linked with inflation. Not just the direct cost to consumers for gasoline, but because petroleum is instrumental in almost every aspect of the economy—transportation, plastics, and energy production—it indirectly affects all costs. Or at least it should.
Little Correlation Between Gasoline Prices and Inflation Until 2021
Little Correlation Between Gasoline Prices…
Little Correlation Between Gasoline Prices and Inflation Until 2021
In testimony to the Senate Banking Committee in March, Federal Reserve Chairman Powell stated that every $10 increase in a barrel of oil leads to a .2 percent increase in inflation. That is, oil is inextricably linked with inflation. Not just the direct cost to consumers for gasoline, but because petroleum is instrumental in almost every aspect of the economy—transportation, plastics, and energy production—it indirectly affects all costs. Or at least it should.