Traders Anticipate Rising U.S. Inflation Amid Ongoing Iran Conflict

Traders are forecasting an acceleration in U.S. consumer inflation over the next 12 months as tensions with Iran persist. According to Jin10, data from Refinitiv indicates that the inflation swap market is betting on an inflation rate of approximately 3% for the coming year, up from around 2.4% at the end of February. The market's inflation concerns are primarily focused on the short term, while expectations for the 12-month inflation rate starting a year from now remain moderate at about 2.4%.