Middle East conflict raises inflation, reshaping central bank policy for 2026
 
 

The ongoing conflict in the Middle East and its impact on energy markets, raises significant uncertainty in the outlook for inflation and growth in 2026. However, it should be stated that the current shock, so far, is not near that experienced in 2022 following the invasion of Ukraine, in terms of energy price levels and prevailing economic conditions. 


 
 
 
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