Quote:
Originally Posted by blankall
A year ago inflation was much higher than it was now. Oil prices are still way above the 5 years average now. So they are still contributing to inflation, just not as much as they were a year ago.
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But inflation is a year-over-year number, so the inflation rate a year ago or oil prices 5 years ago mean nothing for it. All that goes into the number is the price in July 2022 vs. the price in July 2023. And because gas is still cheaper than it was last year at this time, it's not positively contributing to the inflation number. It's dragging it down, in fact; if you excluded gas from the CPI calculation, the inflation rate for July would have been 4.1% instead of 3.3%.