Global inflation to linger and Fed to hike again, OECD says

Inflation around the world will be faster than forecast in 2027, an outlook that necessitates more tightening from the U.S. to Australia, the Organisation for Economic Cooperation and Development (OECD) said.

In a report released on Wednesday, the Paris-based club of rich countries raised projections compared with June for consumer-price growth in every Group of 20 economy apart from China and Saudi Arabia. Monetary policy across the globe may have to respond, its officials added.

“Faced with renewed energy price shocks and stronger-than-expected demand pressures, and at a time when inflation is already above target in many economies, central banks need to ensure that underlying inflation pressures are durably contained,” the OECD said in its report.