Scumbria,
re: "An increase in energy prices will inevitably cause an increase in the costs of producing all other commodities, travel, transportation, manufacturing, etc. When the price of oil goes down, those costs will reduce as well."
Other basic materials were going up in price before oil spiked up, the effect of the economic world-wide recovery, and subsequent demand. Labor costs recently have appeared to trend up. If oil prices go down, and if productivity continues to increase, this may offset the other price pressures.
Who knows, not Greenspan, and certainly not me.
John |
