Inflation across the world’s biggest economies accelerated as a result of higher energy costs and threats to trade resulting from the Iran war.

China’s factory gate prices rose at the quickest pace since 2022 last month, while in Japan — which imported almost 90% of its oil from the Middle East pre-war — producer prices shot up too, and a US CPI reading today is forecast to show the highest level of inflation in years.

Rising inflation has fed expectations of global rate hikes, with traders now betting both the Bank of Japan and the Federal Reserve will raise rates this year. The fallout could be worrying: “Higher-for-longer energy prices mean higher-for-longer inflation and lower-for-longer economic growth,” an S&P economist warned.