After peaking around the middle of 2022, global inflation moderated somewhat in the fourth quarter of 2022 and into the first quarter of 2023. However, although these developments have, overall, been positive, for many economies inflation still remains elevated and well above central bank targets. Importantly, inflation is showing signs of persistence in several sectors.
The latest International Monetary Fund (IMF) World Economic Outlook projects global inflation at 7.0% this year, down from the 2022 average of 8.7%. Inflation is expected to further moderate to 4.9% in 2024. This decelerating trend is reflective of lower food and commodity prices, particularly oil, coupled with the gradual unwinding of supply constraints.