Reuters Poll: Global High Inflation to Persist Through Next Year

Odaily News: A Reuters poll shows that high inflation in the global economy will persist through next year. Economists are increasingly concerned that, beyond rising energy costs caused by the Middle East conflict, upward price pressures may become entrenched. Since last year, global investment in AI has exceeded $1 trillion. Most central banks had previously raised rates only a few times, or not at all; but if inflationary pressures spread further, more central banks may take rate-hiking action in the future.

In recent months, global bond markets have suffered a sell-off, driving yields higher and thereby tightening financial conditions. Since October 7, crude oil prices have remained above $100 per barrel; since the Middle East conflict broke out about eight months ago, oil prices have cumulatively risen by more than 60%. A Reuters survey this month of more than 500 economists worldwide found that, among the 50 economies surveyed, economists raised 2027 inflation forecasts for 31 of them and upgraded growth forecasts for 23; among the 21 developed economies covered by the survey, economists raised 2027 inflation forecasts for 15 of them. This indicates that inflation concerns are spreading and beginning to affect economies that typically have lower price pressures.