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If we are talking about the US, I really don't think (1) was a big contributor. Perhaps ironically, the energy price shock in the early days of the war in Ukrai
by sanderjd 3y ago
If we are talking about the US, I really don't think (1) was a big contributor. Perhaps ironically, the energy price shock in the early days of the war in Ukraine was the thing that actually was "transitory". (I think this is likely less true in Europe, but I haven't paid as much attention to that.)
- bryanlarsen 3y agoOil prices are global.
- Ekaros 3y agoOil prices are not particularly high and have taken actual effort by producers to cut down production. Ofc, they are higher than during pandemic, but still not really that high.
- sanderjd 3y agoAnd yet, this does not contradict what I said. Oil prices, and thus gas prices, did go up quite a bit in the US, but that was clearly "transitory". Certainly this had a large impact on the perception of inflation, since gas prices are very visible. But high gas prices didn't last very long, went up well after inflation had taken root, and went back down well before inflation had begun to ease. I think it's possible that other energy prices (like natural gas, which is not a global market) may have driven inflation outside the US in a more meaningful way, but like I said, I'm not sure that's true either because I just haven't followed that so much.