(MENAFN) According to S&P Global Ratings statement on Tuesday, continuous inflation, supply chain disturbances as well as energy prices may prompt salary inflation and drive the Federal Reserve and other central banks to raise interest rates rapidly than anticipated.
The global rating agency declared in a statement, "after a decades-long retreat, inflation is back. Prices are rising, often dramatically, for items such as oil, semiconductors, and vehicles."
It also mentioned, "inflation strains are prompting some central banks to tighten, raising funding costs," with international demand increase beating supply growth, the agency also stated that inflation is growing rapidly in nearly every place all over the globe.
It added, "recent Fed signaling has prompted investors to speculate that the central bank may raise interest rates sooner and faster."
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