Using Oil to Understand Inflationary Pressures

Ah, at last the market has direction…right? A week ago the market sprang to life after the Federal Reserve announced its intention to hold interest rates at 5.25%. The Fed concluded its two year, 17 quarter-point consecutive rate hike in June of 2006. Since then we have seen inflation drop from a high of 4.32% to a low last year of 1.31%. Recently, inflation has crept back, as last week’s economic data reported that price pressure still remains a problem.

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