Inflation battle is far from over despite oil retreat

BlackRock Head of Global Fixed Income for Apex Navin Saigal warns investors are not out of the woods yet, with government spending and the AI boom continuing to fuel economic uncertainty.

“I think one of the big macro shocks, the oil shock, has alleviated somewhat,” Mr Saigal told Sky News Australia.

“I don’t think we’re completely out of the woods when it comes to inflationary or deflationary factors.

“I think there are some big tectonic forces at play, mainly government spending on the CapEx from companies that are invested in AI infrastructure. I think the oil shock was just one other inflationary impulse that the world had to contend with.”