The International Energy Agency said Tuesday that oil supplies were catching up with demand, potentially easing upward pressure on prices. Higher energy prices ripple through the economy, raising the cost of manufacturing and shipping all kinds of goods, and ultimately driving up prices for consumers. Still, oil supply constraints are only one of an array of factors that have pushed inflation to its highest level in decades. Pandemic-driven shifts in work and spending have led to supply-chain bottlenecks, labor shortages and other issues around the world, pushing up prices for many items. Many economists, including policymakers at the Federal Reserve, expect those forces to recede along with the pandemic, but that will take time.

Source: International New York Times November 17, 2021 10:45 UTC