Energy, supply chains sustain inflation, says Eurobank Research

Inflationary pressures are likely to persist due to ongoing issues in the energy sector and global supply chains, Eurobank Research has indicated. These factors are expected to keep inflation elevated even as geopolitical tensions in the Middle East show signs of easing.

In a previous analysis, Eurobank Research had identified key drivers that could sustain inflation in the near future. The latest assessment reinforces these concerns, pointing to the interconnectedness of energy markets and the resilience of supply chain disruptions as significant contributors to rising prices.

The research suggests that while the de-escalation of the Middle East crisis might offer some relief, the underlying structural issues within energy supply and logistics networks will continue to exert upward pressure on the economy. This outlook implies a challenging period ahead for policymakers aiming to stabilize prices.