The relationship between inflation and gas prices is complex and multifaceted.
One of the primary ways inflation affects gas prices is through the cost of production.
As inflation increases, the cost of producing and distributing gas also increases.
This is because the price of raw materials like oil and gas, transportation costs, and labor costs all rise during inflation.
These increased costs are passed on to consumers in the form of higher gas prices.
Another way that inflation impacts gas prices is through the value of the currency.
The buying power of money is reduced as a result of inflation, which implies that a certain amount of money can now buy fewer products and services.
As a result, even if the real cost of petrol has not changed, inflation makes petrol prices appear to be greater.