KEY POINTS
In its periodic update of economic conditions, the Organization for Economic Cooperation and Development forecast all-items inflation in the U.S. to be at 4.2% for 2026.
The forecast is a sharp step up from the prior projection of 2.8%. Moreover, it is much higher than the 2.7% Fed officials estimated when they updated their own forecasts last week.
The organization cautioned that the Fed and its global counterparts “need to remain vigilant” against inflation threats.