US central bank predicts inflation rise from Iran war as oil prices surge again

The US central bank has raised its forecast for inflation, attributing the upside to a surge in global energy prices linked to the Iran conflict. Energy-driven higher inflation increases the likelihood of tighter monetary policy and poses a market-wide headwind that could slow US growth.

Analysis

The US central bank has raised its forecast for inflation, attributing the upside to a surge in global energy prices linked to the Iran conflict. Energy-driven higher inflation increases the likelihood of tighter monetary policy and poses a market-wide headwind that could slow US growth.