Nucleus Wealth Insights

There has been a surge in the oil price following another outbreak of fighting in the Middle East. The question is, what does the rising oil price do to inflation? In the very short term, the answer is obvious: inflation will be higher. But most central banks exclude oil from the inflation series that they look at. But then, the path can head in two very different directions. Another round of oil-fueled inflation could mean that workers demand higher wages, and the cost-push inflation spiral will continue. Alternatively, paying more at the petrol pump might leave consumers with less to spend elsewhere... the higher oil price might be the last nail in strong spending cycle we have seen since the pandemic. Join us in this week's podcast as Nucleus Wealth's Chief Investment Officer Damien Klassen, Nucleus Wealth's Chief Strategist David Lewellyn-Smith, and Senior Financial Adviser Samuel Kerr examine the different paths and outcomes. Agenda: Oil & Geopolitical issues Cost push inflation De