Oil prices are creeping higher and raising concerns about the impact on inflation’s cooling trajectory, consumers’ wallets and the Federal Reserve’s interest rate policy. U.S. crude oil prices started creeping higher as summer kicked in after spending the first half to the year either slipping or holding relatively steady. West Texas Intermediate crude is up 15% for the year above $90 a barrel. Higher oil prices trickle down to everything from gasoline prices to transportation and production costs for consumer goods. The unwelcome pressure on inflation comes as prices have been generally cooling throughout 2023.
Inflation has been top of mind for investors in recent years, but what is inflation and why does it matter? Inflation has probably been the single biggest factor roiling the financial markets over the past two years. But what is inflation, what causes it, and why does it matter?Let's start with the basics. Inflation is an increase in the general price level of goods and services. In other words, inflation means rising prices. If you paid $4 for a cheeseburger last year, and you're paying $4.50 t
Core inflation is calculated by excluding the more volatile components like food and fuel from consumer price index (CPI) and reflects underlying price dynamics in an economy.
Last week, Opec+ countries announced a voluntary oil production cut by 1.16 million barrels per day (bpd). Reduced global oil supplies can impact the economy of India, which is dependent on oil imports for approx. 85% of its energy needs. Mint explains: