Higher inflation baked in regardless of US-Iran deal
If the US-Iran deal holds and oil prices remain at their new, lower level, this will swiftly lower fuel inflation. However, this drag on headline inflation would be offset – outside the US, at least – by lagged effects of higher energy prices that are yet to feed through. In which case, further increases in inflation to peaks of 3-4% are still to come in Europe and Japan.
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