Geopolitical Tensions Drive Oil Higher; CEE Inflation Pass-Through Delayed
Rising geopolitical tensions, including US President Trump's threat of fresh strikes on Iran, have pushed oil prices up. Analysts note a delayed pass-through from energy costs to inflation in Central and Eastern Europe.
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Oil prices extended gains after US President Donald Trump accused Iran of stalling interim peace talks and pledged renewed strikes. The escalation adds to supply concerns in an already tight market.
In Central and Eastern Europe, the impact of higher energy costs on consumer prices is taking longer to materialize than historical patterns would suggest. Analysts point to a delayed pass-through from energy to inflation, which could complicate monetary policy in the region.
Source: FXStreet Forex News