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Energy Crisis Pushes Inflation Higher as Central Banks Hold Rate Lines

Rising energy costs from geopolitical tensions are driving inflation pressures across major economies, yet central banks remain reluctant to adjust benchmark rates. Malaysia's monetary authority maintained its key rate unchanged as oil price increases have yet to materially shift inflation trajectories. Poland similarly held steady for a second consecutive month despite energy-related price pressures emerging domestically. South Korea presents a contrasting picture, with consumer inflation accelerating to its fastest pace since July 2024 as elevated energy costs penetrate deeper into the broader economy. In US mortgage markets, rates climbed to their highest level since March. The divergence between central bank caution and market reaction reflects uncertainty about whether energy-driven price gains will prove temporary or signal sustained inflationary momentum.