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Article: Rising oil price will not hit global growth, say experts.
- Article from:
- Fund Strategy
- Article date:
- October 29, 2007
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As oil hit $85 a barrel last week, consumer prices were being tipped to feel the knock-on effect. Economists forecast the Consumer Prices Index rising 30 basis points in the coming months and up to 60 basis points next year.
But in spite of oil reaching a nominal record high of $90 this year, economists agree that real prices reached higher levels during the oil supply shortages of the 1970s.
"If you look at the real price, which takes into account inflation over time, then this is not actually at an all-time high," says Paul Dales, UK economist with Capital Economics. "The spikes triggered by the 1973 supply shocks were higher."
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