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New CPI data shows high inflation, but the U.S. oil market is better prepared : The Indicator from Planet Money Gas prices have been dropping, but production cuts from OPEC+ and new inflation data bring back memories of oil shocks of the 1970s. However, the U.S. economy is better prepared now than it was then.

The Indicator from Planet Money

Why oil shocks are getting less shocking

Why oil shocks are getting less shocking

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The price of gas is seen as traffic moves through Annapolis, MD, on November 23, 2021.
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JIM WATSON/AFP via Getty Images
The price of gas is seen as traffic moves through Annapolis, MD, on November 23, 2021.
JIM WATSON/AFP via Getty Images

New CPI data released this morning show that inflation remains high, at 8.2%. Gas prices have been dropping for three straight months, but so is oil production: OPEC+ recently announced it would be cutting production by 2 million barrels a day, bringing back memories of the oil shocks of the 1970s. Today, we look at the effects previous oil shocks have had on the American economy – and why we're better prepared to handle one today than we have been in the past.

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