We haven’t seen anything like this since the 1970s, when oil-producing nations led by Saudi Arabia formed themselves into a cartel and jacked up the price of fuel.
It led to what is known as stagflation. That’s when inflation takes off in a period when economic growth is slowing. Soaring fuel prices added to the cost of pretty much everything. But they also acted as a tax, as everyone was forced to spend more on necessities.
