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AdvancedHat7630 t1_iux7z2a wrote

Reply to comment by amanamongbotss in What factors contribute to gas prices? [OC] by USAFacts_Official

The level of adjustment for CPI is of interest, too. This isn't a very complete picture.

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phdpeabody t1_iv0dfr8 wrote

Gas doesn’t get more expensive because of inflation. Gas getting more expensive is the cause of inflation.

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drawkbox t1_iv10u6q wrote

Exactly.

Oil/gas is also the most damaging in increasing inflation because it affects the fulfillment of all goods across the board.

Oil/gas cartels have a massive lever on inflation they can use to extort the world, which they do on the regular and especially right now.

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phdpeabody t1_iv5d8au wrote

There's no bigger oil/gas cartel than the US Government.

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ThePandaRider t1_iv5hd6l wrote

Everything gets more expensive because of inflation. Inflation is a currency losing value, mostly because the money supply has been expanded. If there is more oil and the demand for oil stays the same the value of oil decreases, if there is less oil and the demand for oil stays the same the value of oil increases. The same thing happens with everything, including currencies. If the supply of dollar is drastically increased from $16trillion to $21trillion in a short timespan then the value of dollars relative to everything should drop. And it has started to drop, we just don't know where it will settle.

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