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U.S. Inflation Is Set for Even Hotter 2022 Due to War’s Impact

  • Wells Fargo economists simulate risks to the global supply
  • Higher oil, food prices would add 1.3 percentage points to CPI
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Powell: Fed Misread Inflation Shock From Supply Chain

Higher food and oil prices as a result of Russia’s invasion of Ukraine could send U.S. inflation to the highest annual level since 1981, based on estimates of the impact on global supplies from Wells Fargo.

If oil remains above $100 a barrel and the Commodity Research Bureau Food Index increases 35% from the end of last year, it would add 1.3 percentage points to the consumer price index this year, according to a research note Thursday from economists led by Sarah House.