Inflationary pressures will remain formidable for the foreseeable future because of pressures on global supply chains in May as a result of the war in the Middle East, data from the New York Federal Reserve showed.

According to Investing.com, the regional Fed bank’s latest Global Supply Chain Pressure Index, released on June 4, showed a drop to 1.77 from an unrevised 1.82 in April. The index remains in the vicinity of readings seen in the latter part of 2022.

Meanwhile, the Institute for Supply Management’s factory sector survey on June 1 noted rising challenges for factory operators in getting the inputs they need, as well as rising prices tied to the war.

The supply chain disruptions and the hit to inflation caused by the war have created a challenging outlook for the Fed, Investing.com said, and it is expected to leave its benchmark interest rate in the 3.50%-3.75% range at its June 16-17 policy meeting.