Posted on 09/13/2022 9:57:50 AM PDT by SeekAndFind
> gas prices have dropped from above $4 a gallon to my being able to fill my car for just $3.55 today.
The question is why do we not yet see a corresponding drop in inflation?
The price of diesel is a better proxy for retail inflation, because shipping is mostly based on diesel, and the more steps in the logistics chain the more influence of diesel cost on cost of goods. There is a lag for price drops because inventory was bought at a higher price and thus higher cost is built in to existing stock.
This is not the only reason...
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