According to Goldman's latest quantitative model, every 10% increase in oil prices, mechanically pushes up the global CPI by about 0.2 percentage points. The impact is highly asymmetric: Central and Eastern Europe was the first to bear the brunt (approximately 0.45%), while the United States and Japan are only near the average, and China is even more marginal (0.1%). This means that the European Central Bank will face more painful pressure to raise interest rates than the Federal Reserve.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments