Cost of oil and inflation: oil price hikes caused by increased inflation

Journal Article · Wed Jul 01 00:00:00 EDT 1981 · Commod. J.; (United States)

OSTI ID:6145109

Ragheb, M M.H.

Blaming the world recession and inflation solely on oil prices ignores other contributing factors, although there is a positive correlation in economic statistics. This correlation is analyzed by plotting quarterly US imported oil prices and the quarterly inflation rate based on the Consumer Price Index. The graph shows that oil prices lag behind the inflation rate; that maintaining high oil prices leads to renewed inflation; and that this establishes a vicious circle. Measures to break that circle include efforts to lower inflation by oil-importing economies and efforts to lower oil prices by exporting countries. Oil-importing countries need to balance their environmental needs and energy production needs to avoid economic collapse and its consequences. Efforts must also be made to stabilize regional conflicts in the Middle East. 1 figure (DCK)

• Research Organization: Univ. of Illinois, Urbana
• OSTI ID: 6145109
• Journal Information: Commod. J.; (United States), Vol. 16:5
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
02 PETROLEUM
OIL-EXPORTING COUNTRIES
ENERGY POLICY
OIL-IMPORTING COUNTRIES
PETROLEUM
ECONOMICS
PRICES
ECONOMIC IMPACT
ECONOMIC ANALYSIS
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
294002* - Energy Planning & Policy- Petroleum
020700 - Petroleum- Economics
Industrial
& Business Aspects
290200 - Energy Planning & Policy- Economics & Sociology