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Cars and trucks + gasoline + other oil products + meat make up 70% of the excess inflation we're seeing. Cars have a specific and well-defined supply chain issu
by matthewdgreen 5y ago
Cars and trucks + gasoline + other oil products + meat make up 70% of the excess inflation we're seeing. Cars have a specific and well-defined supply chain issue (semiconductor unavailability) that we believe will resolve eventually. Meat prices seem to be dropping. And energy prices are only high in a relative sense: WTI crude is cheaper now than it was in most of the period 2007-2014 [1].
[1] https://fred.stlouisfed.org/series/DCOILWTICO https://fred.stlouisfed.org/series/DCOILWTICO
- keyboardCowBoy 5y agoYou mean things like people NEED? when oil goes up EVERYTHING goes up. What about food and rent? Food is probably at least 10 percent and rent up at least 20 percent in my city. This only hurts the lower and middle class.
- matthewdgreen 5y agoLike I said, oil is up. But it’s not up that much compared to prices we’ve seen in this past decade. I’m not convinced that raising interest rates (and potentially throwing our whole economy into a depression) is the right answer to any of these problems. But it’s a very real answer that a lot of people in this thread seem excited about.