world-economy

Iran Conflict Fuels Global Inflation Surge, Tests Central Banks

Fallout from the Iran conflict is pushing inflation higher across emerging markets, forcing policymakers to reassess monetary policy paths. Nigeria's annual inflation climbed to a five-month peak as energy prices surged ahead of the central bank's first rate decision since hostilities began. South Africa's central bank chief signaled officials will monitor incoming data closely to guide future rate moves amid inflation risks. Turkish annual inflation jumped unexpectedly in April as price pressures from the conflict rippled through the economy. The global oil shock threatens to derail reform momentum in some nations while raising the prospect of higher interest rates. Morgan Stanley maintained a bullish outlook for South Africa's longer-term trajectory despite near-term headwinds from higher energy costs.