Inflation Focus - Q2
What’s happening on the inflation front, both globally and locally, what are the key drivers and how are central banks likely to respond?
Key Points
- Inflation targets are within reach and key central banks have started to cut rates
- Progress on inflation is insufficient, however, with services inflation remaining elevated
- Goods inflation has already fallen sharply, and a futher steep decline is not expected
- Policy loosening reduces growth risk, but it remains critical that the focus on inflation is maintained
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