I just heard about this from BBC news. Maybe it is a silly question but i do not know.
Hope somebody who knows economics well could help me.
Tell the detail please.
Thanks a lot.Why the price of oil rises would lead to inflation?
you don't need to be a genius to work this one out. Just about every thing you buy in the shops is brought there by a lorry. If the price of fuel goes up it costs more to take things to the shop so the lorry driver has to charge more. Then the shop keeper has to charge more. When the lorry driver goes to the shop the price has gone up so he needs more money to buy things so he puts his price up and the shop keeper puts his price up and the lorry driver goes to the shop as you can see it keeps going on and on.Why the price of oil rises would lead to inflation?
well, it will only cause price rises in things that use energy to make, or to be transported to you
everything else, should stay the same
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