Franklin Templeton Research Institute chief investment strategist Schultz said supply shocks — Middle East oil disruptions, AI-related electronics shortages and tariff-driven supply effects — have pushed up inflation, though some of these risks should ease into 2027. He expects September core inflation indicators to generally cool. Schultz added that second-round pass-through from energy to other categories is unlikely to appear in September CPI and will probably surface around year-end; labour-

Franklin Templeton Research Institute chief investment strategist Schultz said supply shocks — Middle East oil disruptions, AI-related electronics shortages and tariff-driven supply effects — have pushed up inflation, though some of these risks should ease into 2027. He expects September core inflation indicators to generally cool. Schultz added that second-round pass-through from energy to other categories is unlikely to appear in September CPI and will probably surface around year-end; labour-market driven demand inflation currently shows no clear signs of pressure. He judges the Fed is most likely to leave rates unchanged in October unless CPI significantly beats consensus.