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A comment on U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Years. Parent comment

Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by eqmvii on Friday November 13, 2026 @10:45AM (#50485187)
> The Fed cannot print more oil, and so any efforts to reduce energy inflation with interest rates is going to be futile

Doesn't increasing interest rates reduce demand though? So they can't print more oil, but they can reduce the attractiveness of investments that will require oil, thus indirectly driving prices down?

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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by hgomersall on Friday November 13, 2026 @10:46AM (#50485221)
It doesn't reduce demand from those that receive interest income.
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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by toomuchtodo on Friday November 13, 2026 @10:48AM (#50485253)
Could be more specific, but I agree with the sentiment. Highest US earners drive almost half of US consumption, so yeah, the wealthy are consuming as long as they are and continue to feel wealthy.

https://www.rbc.com/en/economics/us-analysis/us-featured-ana...

https://www.cnbc.com/make-it/2026/03/06/e-shaped-economy-rep...

https://www.axios.com/2026/01/22/jobs-stock-market-rich-amer...

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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by JumpCrisscross on Friday November 13, 2026 @10:57AM (#50485405)
"...average MPCs decline gradually with both income and wealth—from around 25 percent to 20 percent—before dropping off in the upper segments. Average MPCs among households in the top percent of the income and wealth distributions are about 14 percent and 15 percent, respectively" (FEDS Note).

I didn't know this. I wonder if the concavity is symmetric between an increase and decrease in wealth...

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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by toomuchtodo on Friday November 13, 2026 @10:46AM (#50485205)
Elastic demand, but not inelastic demand. And there is a material amount of inelastic demand across the economy which is keeping demand durable, regardless of interest rates and oil/diesel prices.

In the US, the economy is passing increased money and energy costs to consumers. In China and other countries, they are rapidly electrifying light and heavy vehicles. Different responses to similar economic signals.

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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by Muromec on Friday November 13, 2026 @10:53AM (#50485342)
When our dear allies fucked up with oil last time we got shorter work week and bycicle infrastructure.

So maybe elastic or inelastic isn't a binary, but somewhat closer to a step function

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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by thayne on Friday November 13, 2026 @11:19AM (#50485728)
Well part of the problem is that while waging a war that increased oil prices, the US government has simultaneously been systematically dismantling existing projects to use and incentivise alternative energy sources.

Reducing our reliance on oil would be a very sensible response. Unfortunately, I don't think it is one our current government would consider.

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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by toomuchtodo on Friday November 13, 2026 @12:06PM (#50486422)
New Congress is seated January 3rd, 2027. Lets see what happens.
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Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by thayne on Friday November 13, 2026 @11:15AM (#50485662)
It reduces the attractiveness of a lot of investments, some that require oil, some that don't, and many that require labor, and that last thing means less jobs.
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