Global inflation to linger and Fed to hike again, OECD says
The OECD raised projections compared with June for consumer-price growth in every Group of 20 economy apart from China and Saudi Arabia.
As the world braces for higher inflation, the Organisation for Economic Cooperation and Development (OECD) warns that global inflation will outpace forecasts for 2027. The Paris-based organization has revised its projections, expecting consumer-price growth to accelerate in nearly every Group of 20 economy, except China and Saudi Arabia.
The OECD report, released on Wednesday, indicates that central banks worldwide may need to tighten monetary policy in response to renewed energy price shocks and stronger-than-expected demand pressures. In its assessment, the organization emphasized the need to ensure that inflation remains contained in the long run. "Faced with renewed energy price shocks and stronger-than-expected demand pressures, and at a time when inflation is already above target in many economies, central banks need to ensure that underlying inflation pressures are durably contained," the OECD stated.
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