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Correlate

Correlation Analysis

Crude Oil Prices: West Texas Intermediate (WTI) - Cushing, Oklahoma vs Consumer Price Indices (CPIs, HICPs), COICOP 1999: Consumer Price Index: Total for United Kingdom

MCOILWTICO vs GBRCPIALLMINMEI

+0.716

Strong positive

When one moves up, the other tends to follow.

Jan 1, 1986 — Mar 1, 2025Daily471 observationsFREDFRED

AI Analysis

The strong positive correlation between crude oil prices (Series A) and the UK Consumer Price Index (Series B) suggests that, as oil prices rise, consumer prices tend to follow suit, indicating a significant relationship between energy costs and overall inflation. Notably, oil prices lead consumer price changes by one period, meaning fluctuations in oil prices can be considered an early indicator of future inflation trends. However, while the correlation is substantial, it is important to recognize that it explains less than half of the variability in consumer prices, suggesting other factors also significantly influence inflation.

Timing Offset

x leads y by 1 period

MCOILWTICO tends to move before GBRCPIALLMINMEI.

-6-5-4-3-2-10+1+2+3+4+5+6

Correlation at each lag offset (periods). Peak marked with dot.

Peak correlation at offset: +0.681 (13 lags scanned)

R-Squared

45.8%

Share of variance in one series explained by the other.

Trend Agreement

64.7%

How often both series moved in the same direction period-to-period.

Overlap Quality

471

Robust shared window — 471 usable pairs.

Significance

p < 0.001

95% CI: [0.447, 0.822] (approximate)

Time Series

Rebased to 100

Green: MCOILWTICOGray: GBRCPIALLMINMEI36 of 471 points (sampled)

Scatter

XY Regression

5.420406080100120140143.436.3406080100120140143.5Crude Oil Prices: West Texas Intermediate (WTI) - Cushing, OklahomaConsumer Price Indices (CPIs, HICPs), COICOP 1999: Consumer Price Index: Total for United KingdomData pointsFit (r = 0.716)

Pipeline

Data quality details

Pipeline Summary

471 paired observations survived the daily window.

Raw input

483

843

Normalized

483

843

Prepared

483

843

Aligned

471

471

Invalid removed

0

A: 0 / B: 0

Duplicates removed

0

A: 0 / B: 0

Alignment drops

384

A: 12 / B: 372

Series A

MCOILWTICO

Crude Oil Prices: West Texas Intermediate (WTI) - Cushing, Oklahoma

FRED · 483 raw → 483 prepared

Series B

GBRCPIALLMINMEI

Consumer Price Indices (CPIs, HICPs), COICOP 1999: Consumer Price Index: Total for United Kingdom

FRED · 843 raw → 843 prepared

Sign agreement

100.0%

How often both values share the same sign.

Zero crossings

5

Estimated crossover points between normalized spreads.

Slope

0.5513

Linear regression slope.

Intercept

57.7637

Linear regression intercept.

Saved 13 hours ago · ID: fred-mcoilwtico-vs-fred-gbrcpiallminmei-daily-20260406-rcrojp