Oil prices slide - gas prices increase!!! YIKES!
OK - a few important observations:
Now the REST of the Story!
Oil prices declined to $101.58, still above $100 a barrel and the $67 a barrel break even for PetroChina refineries. So either the Chinese government is going to need to provide more subsidies this year, the price of gas will need to increase or refining will be slower. (Aside - PetroChina just announced they are beginning construction on a new multi-billion dollar ($) refining facility.)
Gas prices increased to $3.287! (Diesel is over $4.00 in the U.S.):
Over one year, that is a 22% increase - add THAT to your inflation rate! (Gas prices were $2.673 a year ago - all according to AAA, so the same source.)
I feel a LITTLE better about the average 6.8% inflation rate in China since I have been here! Mostly food prices but the price of traveling has stayed very low, so that's why the CPI has only averaged 6.8%!
The reality is that if the Chinese government increases the price of gas, that will show up in headline inflation rate numbers - and that's not a good thing right now!
- Truck lines still exist around Shanghai,
- Oil prices declined by 4%, and
- Gas prices increased by 1 cent.
Now the REST of the Story!
Oil prices declined to $101.58, still above $100 a barrel and the $67 a barrel break even for PetroChina refineries. So either the Chinese government is going to need to provide more subsidies this year, the price of gas will need to increase or refining will be slower. (Aside - PetroChina just announced they are beginning construction on a new multi-billion dollar ($) refining facility.)
Gas prices increased to $3.287! (Diesel is over $4.00 in the U.S.):
Over one year, that is a 22% increase - add THAT to your inflation rate! (Gas prices were $2.673 a year ago - all according to AAA, so the same source.)
I feel a LITTLE better about the average 6.8% inflation rate in China since I have been here! Mostly food prices but the price of traveling has stayed very low, so that's why the CPI has only averaged 6.8%!
The reality is that if the Chinese government increases the price of gas, that will show up in headline inflation rate numbers - and that's not a good thing right now!
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