Nick McClure wrote:
> But inflation hasn't been 5% sense then has it?

I don't know the exact inflation numbers (nor the exact oil prices).

But I suspect that the current price hike might not be so much the price of oil 
as the weakness of the dollar. Which means the rest of world notices less of 
the response which in turn means a relatively much smaller price elasticity. So 
the US, with its dependence on cheap energy and its dependence on the dollar, 
feels it twice.

I don't think the current high prices are there to stay. Prices will go down 
again. And then they will go up again when the summer season starts. And then 
down again in the autumn. And then up again in the winter. etc. That is what 
happens when the production isn't bound to seass but demand is.
It will still be a few years before the prices will not go down out of season 
anymore.

Jochem

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