looking at a measure that excludes energy prices is that they are typically quite volatile; for example, after rising steadily and hitting a record of about $145 per barrel in July, oil prices then fell to under $100 per barrel in September. Temporary oil price increases do not tend to pass through to the prices of non-energy goods and services when the central bank is credible -- that is, when inflation expectations are well-anchored -- and, therefore, will not result in persistently higher overall inflation. This Economic Letter examines the impact of rising oil prices on core inflation over the last decade for four economies: the U.S., the euro area, Canada, and the U.K. I find some evidence that rising oil prices have had a positive and significant effect on core inflation in the euro area, but I find no systematic evidence that rising oil prices have had a significant impact on core inflation in the U.S., Canada, or in the U.K. Saturday, September 27, 2008 Why the Oil Crisis Will Persist, by Jeffrey D. Sachs, SciAm : ...[F]undamental factors of supply and demand in the world economy will keep oil costly for years to come. ... Drilling in protected areas would provide little relief, and at horrendous environmental risks. Only a concerted move to new transport and energy technologies will relieve the pressures. The greatest irony about the Bush Administration is that it correctly focused on energy needs at the start of its first term, but then got everything