Reuters poll shows high inflation to persist globally into 2027
by@Reuters
Summary
A recent Reuters poll of hundreds of economists indicates that high inflation is expected to persist globally into next year, largely fueled by rising energy costs connected to the ongoing conflict in the Middle East. This turmoil has led to crude oil prices exceeding $100 per barrel and reaching a six-month high, contributing to increased price pressures worldwide. Despite these challenges, substantial investment in artificial intelligence is helping to sustain economic resilience in several regions, while most central banks have maintained a cautious approach to interest rate increases, though further measures might be necessary if inflation continues to rise beyond energy-related factors.
Analysis
HSBC: HSBC is a major international banking and financial services organization with a global economics research team. Its global chief economist Janet Henry contributed a quote to the Reuters poll highlighting growing concerns about persistent inflation. Reuters: Reuters is a leading global news and information provider that conducts regular surveys and polls on economic topics. In this development, Reuters surveyed more than 500 economists worldwide this month to assess inflation and growth outlooks amid ongoing geopolitical tensions. Janet Henry: Janet Henry serves as global chief economist at HSBC, focusing on macroeconomic trends and forecasts. She is quoted in the Reuters poll expressing heightened concern that Middle East developments could lead to more entrenched inflation beyond initial energy cost spikes. Morgan Stanley: Morgan Stanley is a global financial services firm that provides economic analysis through its research division. Its global chief economist Seth Carpenter offered insights in the Reuters poll on how AI-driven investments are supporting economic resilience alongside energy price pressures. Seth Carpenter: Seth Carpenter is the global chief economist at Morgan Stanley, analyzing global growth and inflation dynamics. He noted in the Reuters poll that the inflation picture has grown more complex with emerging signs of energy costs passing through to core measures, even as activity remains resilient. Central Bank Stance: Most central banks have so far limited interest rate increases, though further tightening remains possible if inflation broadens beyond energy factors. Economic Resilience: Substantial investment in artificial intelligence technology is helping support economic activity in some regions despite cost-of-living challenges affecting households. Geopolitical Pressures: The conflict in the Middle East is driving higher energy costs that are rippling through global supply chains and contributing to broader price pressures.
Categories
macropolitics