Higher inflation is coming — import prices show biggest increase in four years

Markets are tracking a sudden, large increase in the cost of imported goods on top of inflation risks from the Iran war, heightening Wall Street angst. The development raises upside inflation risk and increases the odds of a more hawkish Fed reaction, which would tighten financial conditions and pressure risky assets and bonds.

Analysis

Markets are tracking a sudden, large increase in the cost of imported goods on top of inflation risks from the Iran war, heightening Wall Street angst. The development raises upside inflation risk and increases the odds of a more hawkish Fed reaction, which would tighten financial conditions and pressure risky assets and bonds.