why it is so?????????It is said that rise in crude oil price is cause of inflation.....?
Deflation Buzz
Drives Talk
Of a Rate Cut
September 8, 2008; Page C1
http://online.wsj.com/article/SB12208319鈥?/a>
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Inflation seems to have buckled under the heft of a global economic slowdown. Crude-oil prices are down 27% from their July peak. The dollar has rallied, throwing more dirt on inflation -- though the temporary government takeover of Fannie Mae and Freddie Mac could change that. Even gold, investors' friend when prices rise, has declined.
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It is said that rise in crude oil price is cause of inflation.....?
There is nothing the market loves more than the wholesale prices coming down... it means businesses can continue to profit while they stick it to the consumer. The consumer may be unaware of the initial drops in cost to the supplier, and will continue to keep paying high prices while the media, which is pretty much owned by the people who benefit from all this can keeping pumping the expectations of the consumer with false information about scarcity of supply...
In an environment like this, every passing storm, every polilitcal conflict, becomes a tool to threaten the consumer with scarcity. Meanwhile the price of processed oil will never drop below a certain level because of the expectation by the people at the top that they most always expand profit. And so greed, and not really supply and demand, is what fuels hyperinflation.
there are other factors too....there are some commodities decided by govt. on its base inflation is calculated....though the crude oil prices is coming down...still other commodities' prices rising...though oil has the high percentage in calculating inflation...now gradually it will come down...cuz it take some time to balance....
by the forign countries that is inflation or gdp
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