Central bankers and economists warn prolonged conflict could raise retail prices and rip up growth forecasts

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An inflation shock triggered by the US-Israel attack on Iran could wreck a fragile global economic recovery that had been expected to gain momentum this year.

With oil and gas prices spiking, despite a pledge from Donald Trump to protect tankers making their way through the crucial strait of Hormuz shipping chokepoint, central bankers and economists have warned that a prolonged conflict could increase retail prices around the world and force them to rip up growth forecasts for this year.