June 29, 2004

Oh, Um, About That Inflation Problem On the Horizon

I can only hope that the Federal Reserve is factoring the massive effect this will have on inflation in the near future:

Oil prices fell to their lowest in two months on Tuesday as the handover of power in Iraq raised hopes for less sabotage and steadier exports. U.S. light crude settled 1.6 percent, or 58 cents, lower at $35.66 a barrel.

Let's see, that's more than a 20% drop in the price of a critical component of the CPI in just over five weeks. Maybe inflation isn't the problem it has been built up to be over the last couple of weeks by people who will do anything to make the economy look worse than it is.

Posted by Charles Austin at June 29, 2004 05:06 PM