world-economy

G-7 Braces for Persistent Inflation as Bond Yields Climb

Finance ministers from the Group of Seven acknowledged that elevated consumer prices will likely persist longer than previously anticipated, complicating efforts to sustain global economic growth. Rising energy costs have pushed bond yields to multiyear highs, forcing investors to reassess asset valuations after months of strong equity performance. The dollar strengthened to six-week highs amid the uncertainty. Regional tensions in the Middle East have amplified inflation risks, prompting G-7 officials to pledge restraint on fiscal spending measures. The group expressed concern that additional stimulus could exacerbate price pressures already straining households and businesses worldwide. Officials indicated they would coordinate policy responses carefully to avoid compounding the demand-side drivers already pushing costs higher across major economies.