If there's a commodity that has so wide implications on our daily living and the cost of most other commodities and goods that we consume, then that one is oil(gasoline and diesel implicitly). When oil goes up in price "everything explodes"...
I'm seeing all sorts of articles and tweets popping up lately regarding oil going up aggressively and gas and diesel prices breaking record after record in price peaks. One liter of gasoline costs currently about $1.80 in my country. It is $0.10 higher than it was just two weeks ago.
It is double the price it was one year ago, but who cares... People still drive their cars, some for necessities others purely for fun, and the economy is doing... fine.
Traditional Romanian food
No signs of recession here, but for how long? How much are the plebs going to endure? Well, when you have a minimum wage of about $370 and you pour $70 in your tank on a monthly basis, while everything has gone up in price, at some point the bubble has to pop.
Personally, I have drastically reduced my driving and also sliced a bit from my "unnecessary spending". From what I hear, the gasoline price is "doomed" to reach something like $2.30 sometime this year which is a psychological threshold. That translates to 10 RON(my native currency) per liter.
Just to put it into perspective, one year ago the price was 4.6 RON. Hence, how sustainable are the current gas pump prices? I'd give them less than a year before they peak. Once we get to $2.30(10 RON) something is going to happen. The narrative regarding Russia will change and the oil prices will "correct".
The narrative is often times wrapped around "charts and prices" and not vice versa. By the way, how is the situation with gas and diesel prices in your country and how sustainable is it?
Thanks for your attention,
Adrian