'Nothing worse than higher oil prices' as Fed fights inflation

https://www.msn.com ^ | 9/11/23 | Ines Ferré • 13h

[RomanSoldier19]

Oil's upward price movement is making the Federal Reserve’s path toward a 2% inflation target more difficult.

The crude market's rise is likely to have lifted overall inflation last month. And while core inflation — which strips out food and energy costs — has been on a downward trend, economists worry that higher energy prices could increase input costs for goods and services, leading companies to raise prices on everything from airfares to furniture.

"I’d say the rise in oil prices since late June/early July has clearly put upward pressure on gasoline prices and will lead to a large boost in the August headline CPI [Consumer Price Index]," Omair Sharif, president of Inflation Insights, tells Yahoo Finance.

He added, “You may see higher fuel surcharges seep into higher prices for food, for food services, and a variety of goods that are moved by truck — for example furniture, appliances. You can also see higher jet fuel costs make their way into higher airfares."

August's Consumer Price Index report, slated for release Wednesday, is expected to show prices increased 0.5% from the prior month, an acceleration from July's 0.2%. Year-over-year inflation is expected to jump 3.6% versus 3.2% in July.

[Marko413]

Biden shuts down Alaska drilling and 2 days later gas prices go up 60 cents. But it’s not Bidens fault /sarc

[GOPJ]

Didn’t Pedo Biden just shut down exploration in Alaska ?

[ronnie raygun]

as feds fight what the caused, generated crisis

[CodeToad]

“Didn’t Pedo Biden just shut down exploration in Alaska ?”

Doesn’t mean he likes that oil company. He could easily shut it down at the request of another oil company.

[zek157]

The fed has no choice but to defend the dollar at all cost by raising rates.

The problem is tax receipts do not support expenditures by $2.5-3T annually. Without reducing expenditures we are ultimately faced with eventual destruction of the dollar. It will happen as mathematics and exponents do not lie. Ever higher debt will destroy the dollar. Then you will look at this time as the end of a golden era and the beginning of hardship like our grandparents faced in the 1930s. Only this time without the stability brought on by a morality and civil society.

[1Old Pro]

If The Dems win in 2024 we will soon have $8/gal gas.

[Worldtraveler once upon a time]

---- "...while core inflation — which strips out food and energy costs — has been on a downward trend, economists worry that higher energy prices could increase input costs for goods and services, leading companies to raise prices on everything from airfares to furniture."

There is an idiocy in the mainstream media, which opines about one tree and misses the forest in its entirety.

Stripping out food and energy prices from ANY reporting on or discussion of inflation is sheer idiocy.

Most of one's budget, if a home owner without debt, goes to food and energy. Home owners with a mortgage will consider debt service along with food and energy, while renters are truly behind the inflation eight ball now.

The largest reason for inflation is government and its massive spending and rising debt. Oil prices worldwide are only a part of the whole, which for us as a nation currently looks like:

$ 32,918, 978,453,354 and rapidly rising.

See: US Debt Clock

Looking at the US Debt Clock for a short period of time explains far more fully the source of inflation -- government itself -- than "oil prices," especially as the Biden administration blocks leases for oil producers AND promotes moving Americans into "green" electricity -- which is more expensive than petroleum, all the while in part generated by producing the underlying energy with hydrocarbon products.

[John Milner]

gasoline shot up 30 cents per gallon here in the last week. Even more at many stations.

Thanks, “I Did that?!?” Joe.

[GOPJ]

...gasoline shot up 30 cents per gallon here in the last week. Even more at many stations.

AND for icing on the cake, President Sniffer Biden is making ZERO effort to replace the oil he took out of our Strategist Oil Reserve...

[lurk]

Dems do not understand economics.

But they do understand brute force.

[Vaduz]

Higher Energy Prices = Inflation

All dots connect at same point

[GailA]

BTT

[logi_cal869]

Exactly what is it called when the masses become resigned to accepting that the government is ‘fighting’ a fire which they themselves both initiated and feed like a ravenous boiler’s firebox?

Ironically, your gif is not so metaphorical.

[Georgia Girl 2]

And stopping the transportation of natural gas via railway. Things are going to get vey bad soon.