Insight - US$100 oil compounds world economy’s inflation shock

The oil price surge is a worrying combination for the US Federal Reserve (Fed) and fellow central banks as they seek to contain the strongest price pressures in decades without derailing recoveries from the pandemic. Group of 20 finance chiefs meet virtually this week for the first time this year with inflation among their top concerns.

OIL’S surge toward US$100 (RM420) a barrel for the first time since 2014 is threatening to deal a double-blow to the world economy by further denting growth prospects and driving up inflation.

That’s a worrying combination for the US Federal Reserve (Fed) and fellow central banks as they seek to contain the strongest price pressures in decades without derailing recoveries from the pandemic.