Economists See War Pushing US Inflation Above 3%, Hurting Growth

Economists raised their estimates for US inflation through year-end, while trimming consumer spending, growth and employment projections as the war in Iran drives up fuel costs.

The personal consumption expenditures price index is now seen rising 3.1% on average this year, compared a prior estimate of 2.6%, according to the latest Bloomberg monthly survey of economists. While that’s primarily due to higher oil prices, forecasters also expect another metric that strips out food and energy costs to advance more than previously estimated.