Energy Shock Halts Global Disinflation: The New Stagflation Dilemma

The Middle East conflict has shattered the global disinflation trend, triggering an energy price surge that reignites inflation across developed and emerging economies. Central banks now face a precarious dilemma: tighten monetary policy to curb inflation or risk deepening growth slowdowns, while trade wars and AI investment booms amplify systemic fragility.