New Delhi, March 13 (TIWN): The only positive consequence of a continuing conflict in Ukraine from a market standpoint is that the longer it goes the more likely it is to temper the recently conceived inflation fighting zeal of G7 central banks, even though the war itself is adding to the inflationary pressures, says Christopher Wood, analyst at Jefferies.

In his Greed and Fear commentary, Wood wrote that this political reality is already clear in the case of the ECB which is why the euro has weakened by 3 per cent against the US dollar since the Russian invasion began.

Still such a change of tightening stance will take longer with the Federal Reserve given the negative impact from the war in Ukraine is so much less. It is also the case that the latest US inflation data has again reminded investors of the inflation issue. US CPI inflation rose from 7.5 per cent YoY in January to 7.9 per cent YoY in February, the highest inflation print since January 1982. While core CPI inflation rose to 6.4 per cent YoY in February, the highest level since August 1982.