Although it can be addressed in the fuel pump, it also indicates a different kind of economic pain on the horizon.
“This morning market order has written the worries of economic recession,” said Peter Bookwar, chief investment officer of the Bleak Advisory Group. He placed the recession of this year at 99% because “nothing is 100%.”
Prices of oil rose to $ 122.11 on June 8, the highest since March and the highest level since 2008.
With that rise in just two weeks, oil prices fell by 16%. Why? It is inflation, once again, and the propaganda of the Federal Reserve to fight it.
On the same day, the government’s primary inflation scale, the Consumer Price Index, saw its largest jump in 40 years, with prices rising by 8.6% for the 12 months ended in May. It was more than the April reading – the direction no one was expecting.
The mix of bad news promises more or less that the Federal Reserve should raise interest rates more aggressively than previously suggested – which shook investors and toppled equity markets.
On the weekends, US drivers received a little break on prices, as the AAA average of an AAA average of an anleided gas was below the $ 5 mark after it reached a maximum of $ 5.02 gallon per gallon last week. Since then, that price has been reduced by one quarter of a paise every day.
The international standard, Brent crude oil, fell by 4% to the barrel on Wednesday and reached near $ 109. The US standard, West Texas Intermediate Crude Oil, fell 4.5% per barrel to $ 104.
– CNN Business’ Chris Isidore contributed to this article.