The Middle East conflict has significantly increased inflation in the United States, according to the Organisation for Economic Co-operation and Development (OECD). The OECD projects U.S. headline inflation to be 4.2% this year, up 1.2 percentage point from its previous projection in December, but expects this to fade by the end of 2027, with inflation expected to fall to 1.6% - a rate that is 0.7 percentage point lower than its previous forecast. The global economy is expected to grow 2.9% in 2020, a slowdown from the 3.3% growth rate in 2025. However, energy price pressures will continue to impact the economy in the near future. The OECD warns that strong growth momentum in the first quarter of 2026 is due to a slowdown in consumer spending due to declining purchasing power, weakening labor force growth and depleted household savings.