Did Anyone (Other Than Our Vendors) Notice the Price of Oil?

In April 2020, oil prices briefly turned negative.  You had to pay to sell oil.  Oil had started 2020 at $63 per barrel.  Oil ended 2020 at $48.50 per barrel.  Last week, oil briefly crossed $50 per barrel.    We also started to receive notifications from vendors about fuel surcharge increases.  Funny, I do not remember any prices going down when oil plunged.  Fuel (gas and diesel) went down slightly but not very significantly. https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm  In fact, we were warned about potential shortages and price increases of oil related products as refining volumes plummeted. 

The government is going to continue to tell us there is no inflation.  When you owe $27 trillion and counting, you have a vested interest in keeping interest rates low.  As I have said before, I would like the ivory tower economists at the Federal Reserve and Treasury Department to step into the real world.  In the last six weeks, we have received price increase notices for freight, corrugated boxes, , and cores.  To my knowledge, we did not do any year end salary decreases and no employees came to us voluntarily asking their pay to be cut because inflation is low.  Eventually, cost increases will get passed on.

Government officials think inflation is good.  They are going to get to test their thesis in 2021.  Get ready.

Comments are closed.