Diesel and Food Supply Pressures May Intensify Global Second-Round Inflation

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Bitunix analyst: Energy crisis spreads from crude oil to diesel and food, putting global inflation under second-round pressure

BlockBeats reports,September 21, pressure in global energy markets is spreading from crude oil prices to broader refined petroleum products and food supply chains. The U.S. retail price of diesel exceeded per gallon for the first time 6.50 USD, with the spread over gasoline of approximately 2 USD warned that the global public-debt ratio could rise to of in years, and that the simultaneous increases in high interest rates, energy shocks, and fiscal spending would further raise governments' interest burdens and narrow policy space.

Therefore, what the market needs to monitor now is no longer a single oil-price indicator, but whether energy, transportation, and food will form a second-round cost pass-through. If shipping in the Middle East, Russian refining, and Black Sea grain exports fail to improve, diesel and food prices may create new sources of inflation beyond crude oil, forcing major central banks to maintain more restrictive policies; for highly indebted economies, this would also mean higher financing costs and a more limited fiscal buffer, making the policy trade-offs facing the global economy even more difficult.

Original link IMF warns that the global public-debt ratio could rise in 2029 years to GDP of 100%%, and that the simultaneous increases in high interest rates, energy shocks, and fiscal spending would further raise governments' interest burdens and narrow policy space.

Therefore, what the market needs to monitor now is no longer a single oil-price indicator, but whether energy, transportation, and food will form a second-round cost pass-through. If shipping in the Middle East, Russian refining, and Black Sea grain exports fail to improve, diesel and food prices may create new sources of inflation beyond crude oil, forcing major central banks to maintain more restrictive policies; for highly indebted economies, this would also mean higher financing costs and a more limited fiscal buffer, making the policy trade-offs facing the global economy even more difficult.

Original link https://m.theblockbeats.info/flash/368178