Sunday, July 27, 2008

How the Price of Oil Affects the US Economy

Economic forecasting firm Global Insight estimates that each $10 per barrel increase in oil prices raises gasoline prices by roughly 19 cents a gallon, cuts growth in consumer spending by a third of a percentage point, reduces employment by 100,000 and adds one-half percentage point to consumer price inflation.

From The Wall Street Journal, January 2, 2008


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