Iran war shock: US inflation seen hitting 4.2% as global growth weakens
The ongoing Iran war is expected to trigger a fresh wave of inflationary pressure across major economies, with the US likely to see the sharpest surge. The OECD forecasts that US inflation could rise to 4.2 percent in 2026, making it the highest among the G7 economies.
The OECD has released new projections indicating that the US will see the sharpest surge in inflation among advanced nations due to the ongoing Iran war. US inflation is forecasted to rise to 4.2 percent in 2026. The conflict is expected to disrupt energy markets, trade flows, and global supply chains. The US economy is predicted to slow down, with GDP growth expected to reach 2.0 percent this year and 1.7 percent in 2027. Global economic growth is also expected to slow, with the OECD forecasting a 2.9 percent growth rate in 2026. The euro area is expected to be particularly fragile, with a projected growth rate of 0.8 percent this year.
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