Donald Trump’s war in Iran has unleashed a torrent of inflation in the US that economists warn will linger long after the conflict ends, squeezing Americans ahead of November’s midterm elections.
The impact of the conflict has reverberated across the world’s biggest economy since its outbreak in late February and experts say that the inflationary shock will take time to recede.
“We were on a very good trajectory of inflation going down. Now there is somewhat [of a] reversal,” Kristalina Georgieva, managing director of the IMF, told the FT. “What we see is that short-term inflation expectations have moved up here in the United States.”
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