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09 March
Higher oil prices will push U.S. inflation rate to 3% this year, El-Erian says
Mohamed El-Erian listening during a discussion about the global economy.
Mohamed El-Erian listens during a discussion about the global economy at the IMF. Photo: Getty Images

Higher prices will push inflation upward in 2025, limiting the Federal Reserve’s ability to cushion the soft U.S. labor market, said former Pimco CEO Mohamed El-Erian.

Inflation will average about 3% in 2026, above the 2.6% average last year, El-Erian said in an interview Monday on CNBC. That’s well above the Fed’s 2% target.