Economists Lift 2027 Inflation Forecasts in 31 of 50 Economies

Economists raised 2027 inflation projections in most economies surveyed, a sign that inflation concerns are spreading as energy costs rise and may shape interest-rate expectations.

Responses from more than 500 economists, gathered this month, showed upward revisions for 31 of 50 economies. The changes included 15 of the 21 advanced economies. Growth forecasts also increased in 23 economies.

Crude oil has traded above $100 a barrel since Oct. 7, and prices are up more than 60% since conflict in the Middle East began roughly eight months ago. Economists are concerned that rising energy costs and other price pressures may become entrenched.

In recent months, selling across global bond markets has lifted yields and tightened financial conditions. Most central banks had made only a few rate increases or none. More may raise rates if price pressures spread further.

For crypto markets, the rate outlook matters because changes in borrowing costs and financial conditions can influence appetite for risk assets.