Personally, I am not happy about our 8.2% inflation rate (as of September). On a world-wide scale, inflation was 8.8%, slightly exceeding our own. Since we participate in a global economy, it is not surprising that our inflation rate is similar to the global inflation rate and that it is difficult to do much to bring that rate down.
Many have blamed our political leaders for the relatively high inflation rate and the especially high gas prices. At this point there is little they can do in a timely fashion. Gas taxes can be removed (Kemp’s approach) or the Strategic Petroleum Reserve tapped (Biden). Both those approaches look like political maneuvering and exacerbate the problem by keeping demand high.
When the pandemic struck, demand for oil dropped precipitously, as did prices. Wells were capped. When demand rose again, oil companies found it hard to bring back qualified workers to ramp up production. Production is only slowly increasing now.
All the major oil companies are sitting on unused leases they could be drilling right now. From their perspective, why should they increase production when they are making record profits with low production? As long as prices for oil are high due to OPEC manipulation and the war in Ukraine, American oil companies are able to make high profits with little effort.
I believe the oil companies are digging their own grave and providing added impetus to the electric vehicle industry. In the long run, that should give us more stable and lower transportation prices, but in the short run, the oil industry is causing us a world of hurt. Lay the blame where it deserves to be laid.