Connect with us

Economics

Oil Prices Blamed For Inflation When The Driver Is Really Food

Oil Prices Blamed For Inflation When The Driver Is Really Food

By Vincent Cignarella, Bloomberg Markets Live Commentator and reporter

Gas…

Published

on

This article was originally published by Zero Hedge

Oil Prices Blamed For Inflation When The Driver Is Really Food

By Vincent Cignarella, Bloomberg Markets Live Commentator and reporter

Gas prices have been a major factor for the increase in CPI, but when prices dipped inflation remained stubbornly high.

The reason was the constant increase in the cost of food and beverages.

For stocks to really reverse the current downtrend, food and beverage prices need to drop in order for the consumer to continue to spend.

When gas prices surge many of us can try to cut back on driving to save some money but it is far more difficult to cut back on feeding one’s family regardless of price. The answer to inflation will have to come from somewhere else, instead of blaming Ukraine.

Gas prices began to rise almost a year before Russia invaded the country as did the price of food and beverages. Both began to climb in after March of 2020 when the economy was flooded with federal spending.

Fiscal policy is responsible for inflation more so than monetary policy. The Fed is fighting the Treasury’s battle and stands a good chance of messing it up.

Tyler Durden
Sun, 07/17/2022 – 14:30





Economics

Mooners and Shakers: Top analyst says $100k Bitcoin just ‘a matter of time’; for now, baby steps towards US$24k

As George Costanza once said… "it moved!" Bitcoin surged above US$24k for a few hours overnight (AEST) while ETH poked … Read More
The post Mooners…

Continue Reading
Economics

Are Bonds Really A Buy

Are Bonds Really A Buy

By Russell Clark of the Capital Flows and Asset Markets Substack

Every time I open twitter these days, I see someone…

Continue Reading
Economics

Global Food Prices Plummet by Most Since 2008

Despite assurances from government officials and central bank policy makers that inflation was going to be anything but permanent, it
The post Global Food…

Continue Reading

Trending