No recession from energy prices

Rising energy prices will have only a “modest impact” on growth and inflation, the Organisation of Economic Co-operation and Development (OECD) said yesterday. A $10 (£6.10) hike in oil prices would knock activity in the OECD area by just 0.2 per cent in the second year after the shock, its model has suggested. However, if oil price rises are maintained at recent rates (which have seen a $25 per barrel upturn) then activity could be knocked by half a per cent, and inflation could rise by 0.75 per cent, the OECD said.