In the face of persistent inflation that has vexed central bankers around the world, there’s one area where price pressures have eased: energy. The commodities helping power homes and fuel cars have all come off highs in recent months. And while last week’s surprise announcement of a production cut from OPEC and its allies jolted markets, the broader outlook remains largely unchanged. Even if oil rises to $100 per barrel by early 2024, “crude will be mostly disinflationary and consistent with broader disinflation” since prices were even higher last year, said Vishnu Varathan, the Asia head of economics and strategy at Mizuho Bank Ltd.
