Connecting the dots: Why sliding oil prices might not deliver the inflation relief everyone anticipates
WTI crude has dropped back to just below $86 today alongside hopes of easing geopolitical tensions in the Middle East. Oil prices might be sliding again but the inflation problem is not necessarily going to follow in that same direction.
In this article
On the oil prices front, WTI crude has dropped back to just below $86 today alongside hopes of easing geopolitical tensions in the Middle East, according to investingLive. Oil prices might be sliding again but the inflation problem is not necessarily going to follow in that same direction.
Key points
- In parallel, overall consumer prices have rose by roughly 31%.
- Nominal wages have also risen by close to 34% during the same period.
- Since January 2020, gasoline prices have leapt by almost 68% while food and shelter costs have risen by roughly 35% and 34% respectively in the US.
- At the end of the day, inflation coming down does not mean prices are coming down.
- Yet if services inflation remains persistent, then cheaper oil on its own probably will not be able to move the needle much.
Inside the Oil prices story
Since January 2020, gasoline prices have leapt by almost 68% while food and shelter costs have risen by roughly 35% and 34% respectively in the US. In parallel, overall consumer prices have rose by roughly 31%. Nominal wages have also risen by close to 34% during the same period, modestly outpacing overall inflation.
At the end of the day, inflation coming down does not mean prices are coming down. Yet if services inflation remains persistent, then cheaper oil on its own probably will not be able to move the needle much.
Why oil prices matters for traders
Inflation figures decide how long central banks keep interest rates high. Hotter-than-expected readings usually lift bond yields and the local currency, while softer data raise hopes of rate cuts.
Price data feed straight into central-bank decisions, which makes them some of the most market-moving releases on the calendar for forex, bonds and stocks.
Market reaction and data
Crypto prices at the time of writing, from Binance spot data (2026-11-12 12:11 UTC):
| Asset | Last price (USDT) | 24h change | 24h high | 24h low |
|---|---|---|---|---|
| Bitcoin (BTC) | 72,990.84 | -1.32% | 74,811.45 | 72,734.71 |
| Ethereum (ETH) | 2,026.74 | -1.43% | 2,103.78 | 2,013.38 |
| Solana (SOL) | 82.62 | -1.47% | 85.85 | 82.1 |
On the currency side, the latest ECB daily reference rates (2026-11-11) show EUR/USD 1.1127, GBP/USD 1.3307, AUD/USD 0.6859, NZD/USD 0.5583, USD/JPY 159.23, USD/CHF 0.8299, USD/CAD 1.4235, USD/CNY 6.6707. These are reference fixes, not live quotes.
What to watch next for oil prices
Next in focus are the coming inflation releases, central-bank reaction to them and changes in market pricing for future rate moves.
Key scheduled releases on the economic calendar:
- GBP GDP m/m on Thu Nov 12, 07:00 UTC, forecast 0.0%, previous 0.1%
- USD Core PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.3%, previous 0.7%
- USD PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.4%, previous 1.3%
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FAQ
What is the latest oil prices news?
WTI crude has dropped back to just below $86 today alongside hopes of easing geopolitical tensions in the Middle East.
Why do inflation numbers move markets?
Inflation data change expectations for central-bank interest rates, and rate expectations drive currencies, bond yields and stock valuations.
Where does this information come from?
This report is based on coverage from investingLive, checked against market data where available. It is a summary for information only and not investment advice.
Risk warning: This article is for information only and is not investment advice. Trading forex, CFDs, stocks and crypto carries a high risk of losing money. Prices move fast – check live quotes before you trade.
