1. What is the cause of surging of oil price in Uk, is it a cuase for inflation ? ?

Question

hi, i am doing a research on surging oil prices in the Uk. For the research i need to gather information on ----

1. What is the cause of surging of oil price?

2. Is it the one of the causes of inflation?

3. How is it affecting the UK economy?

4. How does it affect the UK particular industries (air, transport,

5. Who are the main victims of inflation?

6. What are we doing to avoid this inflation effect our work?

7. What is the government doing to avoid inflation?

please let me your views.

views from the consumer groups, forums are most welcome.

Answer 1

1.-Supply of oil is flat and/or barely growing while demand grows at least 1-2% every year.

2.-The main cause of inflation is the govermnt printing money.

3.-It destroys savings and wages purchasing power. That has to have an economic impact...

4.-It raises the cost of moving goods, threatening air and trasport industries ans every other industry that requires transport.

5.-Everyone is, except debtors. The real value of a debt erodes when money isnt worth what it used to be.

6.-Whos we?

7.-Nothing, governments always make the problem worse. It probably installed new money printing machines.

Answer 2

The world is in a recession right now because of the oil prices, and the amount left is causing demand pull inflation by the global economy, its a very big contribution to inflation, but it does not make the whole basket of goods in the CPI, it will increase the cost of travel, because producers and suppliers need to pass their excess payments down to consumers, there are many forms of ways to prevent inflation, or slow it down, like less money physically, flowing in the economy, each dollar would be worth more, and its harder to obtain, then it prevents people wanting to buy goods because they can't get money that easily.

also note, i'm not from the UK.