Oil is a master commodity – it’s moves always push all other commodities. otoh -Speculators see momentum develop and begin to pile into the sector chasing that momentum. This rapidly drives prices higher by creating artificial demand. Which is vastly different from inflation defined by the dilution of money – we also have tightness in the oil market and big currency moves – so there are a lot of moving parts.
FWIW- When oil pushed past 100 in 2008 food riots flared up in the third world.
