Home > Main > Deflation Watch: Crude making a run at new lows at under $83 per barrel

Deflation Watch: Crude making a run at new lows at under $83 per barrel

August 8, 2011

Oil prices are much lower than they were a few weeks ago.  You may have heard predictions of lower oil prices somewhere.

This will cause a large and negative adjustment to CPI as per this simple model of next months inflation.

If gasoline prices stay at this level, we’re going to see far, far lower CPI in the coming months.

It’s time to start talking about deflation again.

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