Federal Reserve’s Musalem: Iran war energy shock will cause overall inflation to rise

According to Odaily, St. Louis Federal Reserve President Musalem stated on Wednesday that the energy shock related to the Iran war will definitely impact overall inflation and may exert pressure on core prices. Speaking at an event hosted by the American Enterprise Institute in Washington, Musalem said: “I expect that rising commodity prices will have a one-to-one effect on overall inflation, and there will be a period of persistently high overall inflation.” He added: “Core inflation will also experience some transmission; I will closely monitor the extent of this transmission and the correlation between the two.” (Golden Ten Data)