Thus, the preservation of the credibility of the central bank's resolve to contain inflation is one of the key elements in the adjustment to a higher relative price of energy. An energy price shock is often likened to an income tax increase.
Given that we import about twelve million barrels of crude oil and related products a day, a price increase of $ per barrel translates into a $ billion increase in the oil bill paid to foreigners. Like a tax increase, these added costs reduce the disposable income available to households to make purchases of other goods and services.