Why price inflation could become a real problem.


Following massive injections of cash into the consumer economy these last 16 months or so, prices for goods and services across the board are rising.
That includes the prices of energy products as well, like oil, maybe not so much gas.
At the same time, another story is developing: Drilling for new oil wells is not picking up as has happened in the past when prices are rising.
This may be in part due to companies paying down debts, rather than reinvesting in new hydrocarbon ventures as renewable energy sources come on stream.
So, energy prices are likely to keep climbing, increasing their price component in just about every conceivable consumer product out there.
That means sustained inflation which can settle into a vicious cycle of prices chasing wages.

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