Central banks can’t afford to keep missing their inflation targets

Central banks face significant challenges in meeting inflation targets despite falling energy prices. While the Iran war explains sudden inflationary spikes, relying on this excuse may hide long-term systemic problems that policymakers must confront. Top officials are not yet ready to declare the global economy safe, as they manage the long tail of the current crisis. Consequently, the Iran deal provides minimal relief for central banks remaining wary of persistent global inflation trends.