should-you-be-worried-about-the-oil-price-asks-ubs

Should you be worried about the oil price, asks UBS

UBS advises on whether we are returning to a high inflation world.
Oil prices have steadily increased over the last seven years, reaching an all-time high of more than $75 per barrel in May 2006 and intensifying worries about inflation pressures. Remembering the experiences of the mid-1970s and early- 1980s, such fears might be justified at first glance. However, pondering longer, it becomes puzzling that the steep increase in oil prices has had until now only benign effects on overall prices and, by extension, on the economy.

Our analysis of the link between oil prices and inflation in the 1970s and...
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