Central Banks' Challenges: Taming Oil Price-Driven Inflation

The Wall Street Journal conveyed the anxiety of central bank governors regarding recent IMF warnings. Due to Strait of Hormuz tensions and the direct impact on oil prices, banks are finding it extremely difficult to control inflation rates. This scenario drives investors to hedge heavily with gold, while governments seek to ease the inflationary burden by offering tax exemptions to EV buyers to reduce the oil derivatives import bill.