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What is the impact, if any, on inflation of a sustained oil price shock arising from the Iran conflict?

Answered Question 7975 (2026)
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Asked by

Barbara Edmonds

Member for Mana · Labour Party

Question

  • What is the impact, if any, on inflation of a sustained oil price shock arising from the Iran conflict?

Answered by

Hon Nicola Willis

List MP · National Party · Minister of Finance

Answer

A sustained oil price shock will contribute to inflationary pressures on the economy. The magnitude of this impact will depend on the duration of the conflict, and the responses of key factors such as international supply chains, monetary policy, and consumer spending.