Push for 'net zero' emissions could have significant impact on inflation, Capital Economics says
The global push towards "net-zero" emissions could have significant implications for the inflation outlook depending on how quickly those changes are implemented, economists said.
Alternative Energy
0.00
15:10 16/09/24
BP
389.40p
14:59 25/11/24
Centrica
125.10p
14:59 25/11/24
Ceres Power Holdings
163.90p
14:53 25/11/24
Equity Investment Instruments
12,117.75
15:00 25/11/24
FTSE 100
8,295.51
15:00 25/11/24
FTSE 250
20,657.17
15:00 25/11/24
FTSE 350
4,570.15
15:00 25/11/24
FTSE AIM 100
3,569.30
15:00 25/11/24
FTSE AIM 50
3,985.01
15:00 25/11/24
FTSE AIM All-Share
732.50
15:00 25/11/24
FTSE All-Share
4,525.44
15:00 25/11/24
Gas, Water & Multiutilities
6,200.86
14:59 25/11/24
Greencoat Renewables (CDI)
€0.87
14:53 25/11/24
ITM Power
35.06p
14:59 25/11/24
Oil & Gas Producers
8,118.49
15:00 25/11/24
Shell 'B'
1,894.60p
17:05 28/01/22
According to Justin Chaloner at Capital Economics, that fact is often overlooked, Maria Martínez at Dow Jones Newswires reported.
In a webinar on inflation organized by the research outfit, Chaloner reportedly emphasised that the speed of the transition was key.
If introduced gradually, then companies would have more time to adapt and the impact on inflation would be modest.
Nonetheless, even a gradual shift could make life more difficult for central banks if it occurred when other pressures were building , he added.
And if the transition were rapid, the resulting inflation pressures could be significant.