Markets fret over growth and inflation despite easing oil prices
Zawya · Sophie Kiderlin, Canan Sevgili and Stefano Rebaudo ·
High energy and food prices keep inflation worries elevated
LONDON - Uncertainty over the growth outlook and expectations that inflation will remain elevated next year are weighing on global markets, even as hopes of a de-escalation in the Iran war have eased oil prices.
Government borrowing costs have risen sharply this year, confidence in the AI boom is faltering and European economic data has softened.
The combination is fuelling concern that inflation could stay high even as growth slows, although the Democratic victory in US midterm elections has raised hopes for an eventual end to the Iran war.