Of all the drivers behind the dramatic rise in U.S. inflation in the past year, perhaps the most acute is the surge in energy prices. It may also be among the most persistent. High prices for electricity and fuel are likely to put continued pressure on inflation in coming years, forcing central banks to keep interest rates higher than otherwise. Prices are also likely to become more volatile, which could make it even harder for central banks to control inflation, economists say. That raises the prospect of inflationary episodes, recessions and volatile financial markets. “There is a risk that we’re in for an extended period of structurally higher energy prices,” said Jason Bordoff, an energy expert and co-founding dean of the Columbia Climate School at Columbia University. Energy shocks aren’t uncommon. Geopolitical turmoil in particular has often caused big jumps in prices, for example, after the Arab oil embargo […]