March saw the largest increase in global energy inflation in 25 years

The Iran war has triggered the biggest increase in global energy inflation in 25 years, based on economist calculations using government data. The shock is negative for consumers and growth-sensitive assets, and raises the risk of broader inflation pressure if energy costs remain elevated. It is a market-wide geopolitical shock with clear implications for energy prices and inflation expectations.

Analysis

The Iran war has triggered the biggest increase in global energy inflation in 25 years, based on economist calculations using government data. The shock is negative for consumers and growth-sensitive assets, and raises the risk of broader inflation pressure if energy costs remain elevated. It is a market-wide geopolitical shock with clear implications for energy prices and inflation expectations.