Headline Inflation Could Keep Accelerating, Wilding Says

Pimco economist Tiffany Wilding warned that the Iran war poses economic risks and that headline inflation could accelerate by about 1 percentage point, which would materially raise near-term inflation readings. That outcome would likely boost energy and commodity prices, add upside pressure to interest rates, complicate the Fed’s policy path and increase market volatility.

Analysis

Pimco economist Tiffany Wilding warned that the Iran war poses economic risks and that headline inflation could accelerate by about 1 percentage point, which would materially raise near-term inflation readings. That outcome would likely boost energy and commodity prices, add upside pressure to interest rates, complicate the Fed’s policy path and increase market volatility.