Oil and inflation

The price of oil has nearly doubled from its lows in the first quarter. Now analysts are asking if inflation can be far behind. Crude is such a pervasive commodity that is has the power to affect both the costs of business and consumer spending. But oil prices may do nothing to touch off inflation at all.

According toReuters, "Against an increasing global oil and agricultural commodity price backdrop, we see a reasonable chance that market headline inflation concerns maintain in the coming weeks," Barclays Capital wrote.