(My new American Thinker post)
A few posts back, I introduced you to my Economics Professor, that very nice man from Korea who always made a lot of sense. He once explained the connection between gasoline prices and inflation by saying "People gotta go." We laughed but we knew what he was saying. People need gasoline to move and truckers need to fill up to deliver the goods.
The August inflation figure is out and gasoline prices are in the middle of it again.
This is the story:
Gasoline prices rose 10.6% compared to July and fuel oil prices jumped 9.1%, according to the federal government. That drove up transportation costs. Both commodities cost less than they did a year ago, however. Sarah House, senior economist for Wells Fargo, told NBC that gas prices usually fall in August as consumers start to drive less, but this year was a break from that pattern because of cuts in OPEC oil production. That made for a notable increase in gas prices.
Home prices and rents have also been major contributors to persistent inflation, and in August, the BLS' shelter index climbed 7.3% from a year ago.
So gasoline prices are up because of cuts in OPEC production? Really? What are we doing buying their oil anyway? Don’t we have any?
And home prices and rent are major contributors? There goes the family budget, and everything else such as increases in consumer, credit card and auto loan delinquencies!
What do we do now? Well, the administration is cutting production of Alaska oil and gas leases. Talk about being out of touch with reality. We have all of the energy in the world and the Biden administration wants you to drive an electric car you can’t afford and think about climate change.
In the meantime, “we gotta go” like my Professor used to say and this inflation is rising all the time.
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