finance
Oil Prices Rise, Global Inflation Data Reported
Central banks and ratings agencies are warning of renewed inflation pressures linked to higher oil prices and geopolitical tensions. Markets show mixed expectations for interest rate moves by year-end.
May 19, 7:43 AM·1m read2 sources
DE
marketwatch.comAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Inflation concerns are mounting worldwide as oil prices climb and geopolitical developments add pressure on central banks. Ratings agency Moody’s chief economist warned that the Federal Reserve would be forced to consider rate hikes. Traders are roughly 50-50 on rates either staying flat or rising by year-end.
The Iran war’s inflationary pressures were unlikely to abate, analysts warned, even as President Donald Trump said “serious negotiations” were underway with Tehran. Brasília raised inflation forecasts, saying oil prices had increased 25% since its March forecast.
The Bank of England and European Central Bank have both warned that they may raise rates. This would pile pressure on incoming Fed Chair Kevin Warsh, whom President Donald Trump nominated on the expectation of cuts.
“The Iran war’s inflationary pressures were unlikely to abate, analysts warned, even as US President Donald Trump said ‘serious negotiations’ were underway with Tehran.”
