Energy shocks fade. Their echo does not.

Energy price shocks have largely faded, but their echo persists in the form of lingering cost pressures and structural effects on inflation and investment. These residual impacts complicate monetary policy and may keep interest rates and risk premia higher for longer, influencing asset allocation decisions across energy, commodities and inflation-sensitive sectors.

Analysis

Energy price shocks have largely faded, but their echo persists in the form of lingering cost pressures and structural effects on inflation and investment. These residual impacts complicate monetary policy and may keep interest rates and risk premia higher for longer, influencing asset allocation decisions across energy, commodities and inflation-sensitive sectors.