world-economy

Fuel Surge Pushes Global Inflation Expectations to Three-Year High

Inflation expectations across major economies have climbed to their highest levels since 2023, driven primarily by soaring fuel costs rippling through supply chains and consumer prices. New Zealand reported near-term inflation expectations at their peak in nearly three years as energy prices accelerated upward. US import and export prices jumped in April by the largest margin since 2022, with oil-market pressures tied to geopolitical tensions fueling the increase. In April, inflation reached 3.8 percent year-over-year, marking the steepest rise in nearly three years. The fuel-driven inflation surge has pressured bond markets globally. In the United States, 30-year yields reached 5 percent—the highest since July—as investors recalibrated expectations for sustained higher prices and increased government borrowing needs.