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U.S. inflation remained surprisingly muted through May, with limited impact from President Donald Trump’s tariffs. But U.S. airstrikes on Iran’s nuclear facilities over the weekend could contribute to pressures that may send price gains back to the highest levels in two years.
That’s according to James Knightley, the New York-based chief international economist for Dutch banking and financial-services company ING
ING. He sees a chance that oil could reach $120 per barrel, up from around or slightly above $74 per barrel now, which would send gas prices to $5 a gallon, versus a current national average of $3.22 a gallon. And that in turn has the potential to send headline U.S. inflation to levels not seen since 2023, starting in the second half of this year, Knightley said.
This post was originally published on Market Watch
