Petro..

Inflation as measured by the (CPI) set a 40-year high in March 2022 amid COVID-19 supply disruptions. Crude oil prices were the highest in a decade as the U.S. cancelled to pipelines in USA and Germany, and imposed sanctions on Russia which disturb the flow of oil food, and fertilizers around the globe.

There was a strong correlation between inflation and oil prices during the 1970s. Costly renewable energy could re-strengthen the correlation between energy costs and a higher inflation rate.

A study by the Federal Reserve Bank suggested that if crude oil prices rose to $100 per barrel for three months, the spike would boost the annual inflation rate by 3 percentage. it has reached $120 and continue for a long time.

Energy accounted for about 7.3% of the CPI as of December 2021, including the index weighting of about 4% for energy commodities.1

Crude oil is a key ingredient in petrochemicals used to make plastic. So, more expensive oil will tend to increase the prices of many products made with plastic.  Just a thought.