ISLAMABAD — Inflation is expected to ease in September despite heightened uncertainty stemming from the ongoing conflict in the Gulf, according to market participants and analysts.
Financial-sector estimates put crude-oil prices at between $90 and $100 a barrel through the remainder of September and into October, a range that could keep inflationary pressures relatively contained if the regional conflict does not escalate.
That outlook has come under renewed pressure after U.S. President Donald Trump said Saturday that he had rejected an Iranian proposal related to the Gulf conflict. Iran, meanwhile, is preparing for the possibility of U.S. military strikes, raising concerns in financial markets that a broader escalation could disrupt oil supplies and push crude prices sharply higher.
A sustained rise in oil prices would complicate the inflation outlook, increasing costs across fuel, transportation and other energy-sensitive sectors.
