UBS's Jason Draho Suggests May Inflation Data Could Signal Peak Amid US-Iran Deal
Jason Draho, head of asset allocation at UBS Chief Investment Office, has indicated that May's inflation data could represent the peak for the year-over-year measure. This assessment is made in the context of a potential deal between the United States and Iran. Draho forecasts that as energy prices gradually decline, inflation is expected to stabilize and eventually dissipate, even though immediate normalization of oil flows and energy prices is not anticipated following a deal.
Jason Draho, head of asset allocation at UBS Chief Investment Office, has offered insights into the current inflation outlook, suggesting that May's inflation data might mark the peak for the year-over-year measure.
This perspective is connected to discussions surrounding a potential deal between the United States and Iran. Draho clarified that while a deal could influence future trends, oil flows and energy prices are not expected to immediately return to normal levels once an agreement takes effect.
According to Draho, the anticipated decline in energy prices will play a crucial role in bringing inflation under control. He projects that as energy costs decrease, inflation will begin to level out before eventually dissipating.
(Source: Bloomberg Markets)
