It wouldn't be wrong if it's said that
the cost of oil is the main determinant of inflation. When the cost
of oil increases, the cost of everything else increases with it. The reason for
this raise in prices is simple. Oil is a fuel. Fuel is needed for transportation,
machines in industries and even used on a domestic level. Oil is a
non-renewable energy source so it is extracted. When the demand for
oil increases and there isn't enough oil so the prices are bound to rise. All
trades in the world are dependent on it. Goods need to be supplied and the
lack of fuel will make the task at hand difficult.
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