French Business Lobby Sees No Inflation Surge from Iran War

Finance-focused outlets describe the Iran war as a global economic shock that will touch every large economy, but with different levels of pain by country and sector. They point to OECD warnings, G7 concern, and company reports like Next’s to argue that energy and supply-chain costs are already rising, even if headline inflation in places like France and the UK has not yet spiked. They expect central banks such as the Bank of Japan to react with earlier or faster rate hikes if conflict-driven price pressures build.

• •The OECD warns the Iran war will affect every major economy, with the UK more vulnerable than most peers.
• •G7 finance ministers describe the Iran conflict as a 'catastrophe' that they have limited power to stop.
• •UK retailer Next reports conflict-driven cost pressures despite a 14.5% jump in profits.
• •France’s main business lobby does not foresee a sharp inflation surge from the Iran war at this stage.
• •A former Bank of Japan chief economist expects the BOJ may raise rates by June because the war is fuelling inflation.