Inflation Focus - Q1

What’s happening on the inflation front, both globally and locally, what are the key drivers and how are central banks likely to respond?

Tectonic shifts are underway in the global economy, driven by the changing geopolitical and global trade backdrop
Inflation should continue to grind lower near term, with goods deflation and slowing services inflation still in place
Central banks are set to respond to any emerging price pressures, which should help to contain inflation medium term
Inflation will remain volatile, however, amid more fractured global trade and defence spending pressures