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Flexibility in Oil and Food Markets Eases Fears of Stagflation Caused by Iran's War
Economic analyses have shown that the Iranian war did not cause a devastating shock to oil markets or inflation, as its impacts remained short-term. There were no significant disruptions in import prices or supply chains, thanks to the stability of the global trading system and the resilience of importing countries. Despite tensions, prices of food commodities and satellite services experienced limited fluctuations. Central banks managed to control inflation by raising interest rates, which helped avoid entering a stagflationary recession.
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