The Financial Times writes about the passage of peak global inflation. Key indicators and data suggest that the overall rate of global price growth may slow in the coming months.
Most remember the U.S. inflation data of 7.7% for October, compared to the forecast of 8% and the previous reading of 8.2%. In Germany, wholesale prices fell more than 4% m/m in October. The decline in prices was observed in summer in the UK and the US. The head of the IMF also confirms this thesis, stating that global inflation is close to its peak. It is likely that it has already passed it.
A similar trend can be seen in the prices of raw materials. Oil has rolled back to the levels of the previous year; copper, steel, aluminum, lumber, and gold have all declined.
Manufacturing activity is declining, and the service sector (the engine of GDP in developed countries) is also bleak. There are massive layoffs in major companies and a recession is on the horizon. Consumers are cutting back on spending, while companies are cutting back on business investment. There is a high probability that after the fight against inflation, the world’s central banks will fight the recession.