The price of oil has made a remarkable comeback from the six-year low in January. Since then, crude prices have risen 45%. The worry now is that if this level of growth is sustained, than inflation may occur. Over the past couple of months over 27 central banks have loosened their regulations to fight against deflation or slowed growth, however they might have been helping inflation creep up. These efforts against deflation range from interest cuts to Quantitative Easing (bond buying). An economist from Merrill Lynch stated that "A positive oil shock has a detrimental effect on growth and activity, and could generate some volatility."
It will be interesting to see how these rising oil prices will affect the world's inflation rates
http://finance.yahoo.com/news/deflation-oils-45-percent-rebound-102407219.html
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