Learning that drives better investment decisions

Oil Price Causes Spikes and Crashes in Inflation


 

  • Big moves in oil price have a big impact on inflation
  • Correlation of 54%, hence, if oil price increases inflation increases and vice versa
  • This chart also highlights how sensitive CPI as a measure of inflation is to big price changes in oil

 


DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.