Barclays: Oil price shocks have passed, but inflation still exists.

Barclays said that, despite the significant fall in oil prices from their peak during the Iran conflict, its forecast for inflation has worsened. The bank stated in a report to clients that in recent months, the path for the Federal Reserve to stay put and not raise interest rates this year has narrowed significantly. However, the bank added that this is still the bank's base scenario. Barclays stated that while oil price shocks come and go, inflation does not, and the reason for this is the overall strength of the US economy at present. The bank added that therefore, the fall in oil prices will not help the Federal Reserve escape the inflation dilemma.