Reply #3: Some things are going to be more expensive.

[ozymandius]

Oil rises to near $86 after Fed bond buying move

BANGKOK – Oil jumped to near $86 a barrel in Asia on Thursday as the dollar weakened moderately after the Federal Reserve's announcement it will buy $600 billion dollars of Treasurys to stimulate the U.S. economy.

The announcement wasn't a surprise for markets but it underlined expectations that the dollar could weaken further and push up prices for commodities including oil. Since crude is priced in dollars, a weaker dollar makes it more attractive to buyers using foreign currencies.

Speculation about what the Fed would do has captivated energy traders for weeks. Now that it has been announced, the focus may shift to such basics as supply and demand. Oil and gas supplies are ample and demand is weak.

But don't worry. As long as price increases only affect things like paperclips, and not inconsequential things like energy and food, then inflation will be quite subdued.