Energy inflation has been more persistent than expected: Fed's Goolsbee
Energy inflation linked to the conflict in Iran has proven to be more enduring than anticipated, according to Chicago Federal Reserve President Austan Goolsbee. He noted that initial market forecasts had predicted lower energy prices than what is currently observed. Goolsbee warned that this situation poses a stagflationary risk for Asian economies, which are heavily reliant on energy imports.
- ▪Energy inflation has lasted longer than expected due to the war in Iran.
- ▪Brent crude futures are currently at $96 per barrel, significantly higher than pre-war levels.
- ▪Goolsbee highlighted the stagflationary shock for Asian economies that are energy importers.
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Energy inflation tied to the war in Iran has lasted longer than expected, creating a "stagflationary shock" for Asian economies, Chicago Federal Reserve President Austan Goolsbee said Thursday.Speaking to CNBC's Kaori Enjoji at the Bank of Japan-IMES Conference, Goolsbee said that initial estimates in the futures markets had expected energy prices to be "a lot lower" than current levels.While oil prices have eased recently on signs of progress in U.S.-Iran peace talks, prices remain well above levels seen before the war. Brent crude futures, the international benchmark, gained over 1.81% to $96 per barrel, while the West Texas Intermediate futures gained 1.71% to $90.21 per barrel.That compares with $72 price for Brent, and $67.02 for WTI the day before the U.S.
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