World Economy

Central Banks Shift to Tighter Policy as Energy Costs Pressure Inflation

Major central banks are accelerating interest-rate increases amid renewed inflationary pressures from rising energy costs. The Bank of Japan plans to raise its benchmark rate with another hike expected by January, marking a faster pace of policy normalization than previously anticipated. The European Central Bank signaled additional increases are possible within weeks, with officials indicating another move could occur as soon as next month. U.S. producer price data showed inflation accelerating last month driven by energy surges, strengthening the case for the Federal Reserve to raise rates at its upcoming meeting. Turkey's central bank held steady, reflecting caution about balancing disinflation progress against volatile oil markets. Central banks across major economies are shifting toward tightening as crude price volatility threatens inflation-reduction efforts.