US inflation will surge to 4.2% on energy shock, warns OECD
The OECD forecasts that US inflation will surge to 4.2% this year due to the energy shock caused by the Middle East crisis. This increase in inflation is expected to have adverse consequences for growth, with global growth slowing to 2.9% in 2026.
The OECD predicts that US inflation will jump to 4.2% this year, the highest in the G7. This is due to the energy shock caused by the Middle East crisis, which will increase energy prices and add to business costs. The OECD expects global growth to slow to 2.9% in 2026, down from 3.3% last year. The US economy is forecast to slow to 2% this year and 1.7% in 2027. The energy shock will also affect other countries, including China, South Korea, and India. The OECD warns that a prolonged period of disruption could result in significant energy shortages and lower growth.
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