The Organization for Economic Cooperation and Development raised its global inflation forecast on Thursday and recommended policy measures to help governments and central banks address rising prices driven by oil market disruptions. The OECD raised its inflation forecast for the United States to 4.6% for 2026, higher than the Federal Reserve's estimate of 2.7% for the same period.

The international organization attributed the inflation pressures to ongoing Middle East tensions that have disrupted energy markets. "The evolving conflict in the Middle East has human and economic costs for the countries directly involved, and will test the resilience of the global economy," the Organization for Economic Cooperation and Development said in its assessment.

The OECD said central banks should remain vigilant and attentive to shifts in economic and financial risk balances to ensure that underlying inflation pressures are durably contained. The organization said central banks need to balance the risks of inflation and growth moderation in light of labor market dynamics.

The OECD said governments may consider subsidies, tax reductions, and price caps to support households and businesses during periods of energy price increases. The organization said any measures should be temporary, targeted to those most in need, and should preserve incentives to reduce energy use.

The OECD said reducing reliance on imported fossil fuels will minimize the impacts of major energy supply disruptions. The organization urged governments to prioritize domestic energy efficiency to reduce exposure to future geopolitical shocks and lower costs for consumers. The OECD said clean energy initiatives such as upgrading power grids and accelerating permitting processes support energy security and efficiency.