Quote:
Originally Posted by RummyBoy
Sure, inflation is always better than deflation. However, if inflation is way below target (assuming target is around 2%) then wont lower oil prices decrease it even further?
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Yes. Although that won't cause the feared kind of deflation, or at least it is kinda hard. It's kinda hard to postpone fueling the car. Although some bigger buyers like industry might do it if they have sufficient stocks. But, biggest players usually lock down the prices with futures.