REUTERS SURVEY of more than 500 economists finds global inflationary pressures
will likely persist through next year. Economists said price pressures risk
becoming entrenched beyond energy-driven rises from the Middle East conflict;
global investment in AI has exceeded $1 trillion since last year. Many central
banks have so far raised rates only a few times or not at all, but further
spread of inflation could prompt additional tightening. A recent global
bond-market sell-off has lifted yields and tightened financial conditions. Oil
has traded above $100/bbl since Oct. 7 and is up over 60% since the Middle East
conflict began about eight months ago. In the survey, economists raised 2027
Inflation forecasts for 31 of 50 economies covered and raised 2027 growth
forecasts for 23; among 21 advanced economies, 15 had 2027 inflation forecasts
revised up, signaling inflation risks are spreading into normally low-inflation economies.
