The Middle East conflict wiped out what would have been a modest upgrade to global growth and a stable inflation picture.
- That has been replaced with a fresh warning about soaring energy costs and U.S. prices, which are projected to run far hotter than expected.
Why it matters: What was a more manageable inflation story now looks like a pressure test for central banks that may need to raise interest rates — or hold off on further cuts — even as growth weakens.
