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El-Erian Says Ukraine War Effect to Spur U.S. Inflation Higher

  • Allianz economic adviser sees Putin inflation component
  • Renews criticism of Fed, says U.S. can avoid recession
Mohamed El-Erian
Mohamed El-ErianPhotographer: Scott McIntyre/Bloomberg

Allianz SE’s Mohamed El-Erian said the economic fallout from Russian President Vladimir Putin’s full-scale invasion of Ukraine is likely to include a further pickup in U.S. inflation.

U.S. consumer prices rose at a 7.9% annual rate in February, keeping inflation at 40-year highs. El-Erian said he estimates the rate will peak at “very close or above 10%” before retreating.