The Omicron variant of COVID-19 could potentially prolong some of the supply chain challenges that heightened inflationary pressures during the pandemic and central banks need flexibility to address the uncertain landscape, a panel of economic experts said during the Reuters Next conference on Thursday. “On the supply side, it means the inflationary pressures will probably persist even longer,” said Kristin Forbes, an economics professor with the Sloan School of Management at MIT. “And given how tight everything is right now, that could mean some notable increases in inflation … due to supply side constraints.”

Leave a Reply