Global forecasting group sees US inflation at 4.2% this year, much higher than Fed estimate | Metals Mine

  • Global forecasting group sees US inflation at 4.2% this year, much higher than Fed estimate

    From cnbc.com

    The Iran war and its impact on the global energy market will keep headline U.S. inflation this year well above the Federal Reserve’s projections, possibly necessitating policy action, according to a key global policy group. In its periodic update of economic conditions, the Organization for Economic Cooperation and Development forecast all-items inflation in the U.S. to be at 4.2% for 2026. The forecast is a sharp step up from the prior projection of 2.8%. Moreover, it is much higher than the 2.7% Fed officials estimated when they updated their own forecasts last week. The revision is due to two primary factors: ... (full story)

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ffghost
Mar 26, 2026 9:28am
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From the article: "However, the agency said U.S. inflation is likely to recede sharply in 2027, back to 1.6%, which is actually well below the Fed estimate of 2.2% and less than the central bank’s 2% target. Core inflation, which excludes energy as well as food prices, is estimated at 2.8% this year, then 2.4% in 2027."

Come on. It's 'doom and gloom' for this year but next year is amazing by comparison to where we are even today? All accompanied by the article stating that the conflict will cause the inflation, but the extend/duration of the conflict is unknown.

Maybe the title should have been: "we have no clue what is going to happen". That was pretty much the statement from every central back recently. Might as well but the same for OECD.
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