Global Inflation Expected to Remain High Until 2027, Economists Warn
A survey of more than 500 economists suggests that inflation could remain high across several major economies until 2027. Rising energy prices and international tensions are creating additional pressure.
LONDON: Global inflation could remain higher than expected well into 2027, according to a new survey of economists conducted by Reuters.
The survey included more than 500 economists who expressed concerns about rising energy costs and their impact on prices across the world.
Oil prices have remained above $100 per barrel since October 7, adding pressure to transportation, manufacturing and other business activities.
Higher energy costs can eventually affect the prices of food, household products and essential services.
Economists have increased their inflation forecasts for 31 of the 50 economies included in the survey.
The United Kingdom and the eurozone were among the regions where forecasts were raised significantly.
Despite inflation concerns, global economic growth is showing some strength. Economists have increased their growth forecast to 3% for 2026 and 3.2% for 2027.
Investment in artificial intelligence has also supported business activity, with global AI investment exceeding $1 trillion.
However, stronger economic activity could make it more difficult for central banks to bring inflation under control.
The latest findings suggest that governments and central banks may continue facing difficult decisions as they try to control prices without slowing economic growth.