Trish Talks Oil and Consumer Prices


I want to point out in today's market, you are seeing oil prices down slightly in the high 90s per barrel of oil. Don't forget it had gone up to a 130 in change in overnight trading just a week or two ago. The reason now you're seeing it decline is because China has come out with the mandatory shutdown because it's going to increase in cases of COVID. So I do suspect that the decline in energy prices is very temporary. You saw today's number on inflation we're looking at a 10% increase in consumer prices forgive me. Wholesale prices. It will eventually catch up to consumer prices which have already increased 7.9%. Since last year, but the latest read now, as I predicted, I predicted we'd see 10% on producer prices. Here we are. Sure enough, it's here right now this month a 10% increase year over year in the prices that producers pay for good. So these are the wholesale prices, right? Well, what happens? A producer pays that much more for goods and that producer has to pass that on to consumers, otherwise it eats into profitability. And right now we've shown willingness for the consumer to absorb that. And so they do pay the higher prices, which leads to higher consumer prices, and this thing is off and running. Now, the fed is meeting today, the first of its two day meeting, we'll find out tomorrow whether or not it followed through on its promise to increase interest rates by 25 basis points, the expectation is that it will, and that will help on the margin, but look, we've got a serious inflation problem, and we had a series inflation problem long before this Russia thing. It's disingenuous, frankly. For the administration to sit there and tell us, well, it's all Putin's fault now. It will be Putin's fault. But what we've got thus far, this 10% increase in wholesale prices, the 7.9% increase in consumer prices, that's actually that is actually full on Joe Biden and Jerome Powell's

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