Skip to main content

Higher oil prices not a game-changer for inflation

We are not convinced that the increase in oil prices has set the stage for a sustained rebound in inflation. Accordingly, there is little chance that developed market central banks will resume or extend tightening cycles in response. That said, if oil prices rose a lot higher and stayed there, policymakers would not be able to dismiss the risk of ‘second-round effects’ on inflation as easily as they did in recent decades.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access