0202 GMT - Global inflation is likely to worsen before improving amid the ongoing Middle East conflict, says BMI, a unit of Fitch Solutions, in a note. BMI's higher-for-longer oil price assumptions suggest that global transport inflation, including fuel prices, will rise to around 10% on-year by end-2026, up from 5.9% in August. This implies that global headline inflation could rise by around 1 percentage point over the next three to six months, nearing 5.0% on year, BMI adds. It then expects inflation to fall sharply in 2Q next year once oil prices normalize based on BMI's forecast for a preliminary Mideast peace agreement in 1Q, while remaining above central bank targets in major economies throughout 2027.