2008 global oil price spike (July 2008)
Crude oil surged past $140 a barrel in mid-2008 as Middle East tensions and tight supply gripped markets. Pump prices hit records in oil-importing countries, feeding headline inflation across the developed world.
The global financial crisis destroyed demand within months; oil fell below $40 by year-end and inflation reversed sharply.
Showed how fast fuel shocks move headline inflation, and how quickly they unwind when demand collapses.
New Zealand imports all its refined fuel since its only refinery shut in 2022, so pump prices track global crude directly. Today's oil rebound threatens the same transmission into CPI.
