Iran war cost US $38bn over five months, CBO says
Will push inflation up about 0.5 percentage points by early next year, a new congressional study finds.
The US Congressional Budget Office estimates the five-month conflict with Iran has cost $38 billion and will add roughly 0.5 percentage points to US inflation by early next year. For African economies, the fiscal and inflationary pressure implied could sustain a tighter-for-longer US monetary stance, keeping dollar financing costs elevated for frontier sovereigns and corporates. Higher US inflation may also feed through to global commodity and energy prices, affecting import bills and terms of trade across the continent.
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