Catch up with Kyle: 30 May 2018

A strong dollar and elevated oil price have markets concerned

The effect of a spike in the oil price has been less harmful than in the past

The oil price has risen from roughly $60 a barrel (bbl) a year ago to above $80/bbl. In year-on-year terms, this is the 11th largest increase in 70 years. Such a significant spike definitely holds a risk, as it could push up inflation and reduce consumer spending. However, in real terms, oil prices are well below the range we saw between 2005 and 2015. After adjusting for inflation, $80/bbl today is only $67/bbl in 2008 terms.