Americans Concerned About Inflation Despite Positive Economy

Oil prices went down a little on Monday because Federal Reserve officials in the US are waiting for more signs that inflation is going down before they start cutting interest rates. This means they want to make sure prices are not rising too fast before making any changes. Two important Fed officials said they are not yet sure if inflation is going back to the target level of 2%, even though recent data showed that consumer prices were not going up as quickly in April. When oil prices are in backwardation, companies are more likely to use the oil they have stored instead of waiting for prices to drop in the future. If prices go into contango, where future contracts are worth more than the current price, companies might start storing oil for later, which could make prices go down. Even though there were some political issues in Iran and Saudi Arabia, the oil market didn't seem to be affected much. In Iran, the president's sudden death shouldn't change oil policies because the Supreme Leader has the final say on all important matters. In Saudi Arabia, the market is used to the Crown Prince leading the energy sector, so things are expected to stay the same. Saudi Arabia's oil exports went up in March, reaching the highest level in nine months. Russia's gas production increased, but oil production went down because of agreements with other oil-producing countries to cut production. Despite a drone attack damaging an oil refinery in Russia, the country decided to lift a ban on gasoline exports until the end of June. Studies show that people are worried about inflation eroding their purchasing power. Different groups of people prefer different inflation rates - some want lower inflation, while others prefer higher inflation. This shows that people experience inflation differently based on their income and where they live. It's important for the central bank to understand these differences when making decisions to keep the economy stable.