On economics

Commodity price increases, and the oil price in particular, are preoccupying most economists. This ...

Commodity price increases, and the oil price in particular, are preoccupying most economists. This is hardly surprising since the price of crude broke through $130 per barrel in May, which is remarkable when you consider the price fell to under $10 in 1998. Oil price increases, and the prices of other commodities, are causing inflation. So far, this has been manageable, but if they persist there is a danger the anchoring of consumer expectations will become dislodged, resulting in the expectation of further price increases and demand for higher salaries. The Government is keen to av...