Insight - Coping with dual shock: Inflation and oil prices

SERC's Lee Heng Guie: We expect persistent gyrations in global financial markets as investors continue to assess both direct and indirect economic and financial fallout from soaring prices of energy, commodities and industrial materials as well as the Russia-Ukraine war. A global stagflation and recession is likely if high inflation and oil price shocks are prolonged.

THE oil and commodity price surge prompted by the invasion of Russia on Ukraine inevitably conjures up memories of previous episodes of oil price shocks.

> The United States and global recession were triggered by the tripling of oil prices following the 1973-1974 first oil shock from the Yom Kippur war;