Energy crunch, elusive geopolitics and elevated inflation: The MUFG Global Markets Podcast

With inflation currently at multi-decade highs and uncertainty surrounding the inflation outlook already unprecedented, the last thing the recovering global economy needs is another leg higher in energy prices. Yet that is what it is getting.

A confluence of elusive geopolitics surrounding both the Russia-Ukraine crisis and Iranian nuclear negotiations, in conjunction with the extreme shortage of oil and gas supplies, are rattling global markets.

Ehsan Khoman, Head of Emerging Markets Research (EMEA), takes stock of developments and offers his perspective as to why further rises in salient energy prices could fuel inflation expectations and wage pressures, with oil – and the broader bull commodities market – contributing to significant monetary tightening over the next 24 months.

 

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