Oil Prices Causing a Spike in Import Prices in June
If you are one of those people watching the gas prices rising everyday then you are not alone! The price of petroleum has jumped by more than 20% in June. How is this affecting the global economy? Wachovia reported Friday that this has caused a more than expected increase in import prices, rising about 3.2 percent in June.
Non-oil import prices did not change much. Biggest increases for non-oil products were about 0.2 percent. This caused the year-to-year inflation rates to be down. Therefore we should see a downward pressure on prices for most products.
Oil prices are predicted to decline in July and in the coming months. This should continue the downward slope of import prices as well as other non-oil products. Overall it looks like we might be seeing some relief at the gas pump for a little while longer. Will the prediction follow through and what can we see from the global economy in the coming months?
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