The global economy has endured a series of shocks over the past few years, as COVID shutdowns, unprecedented stimulus, supply chain seize-ups and Russia’s invasion of Ukraine have all created significant challenges. The most obvious result of these shocks is inflation, even as the economy slows and reduced stimulus hits consumer spending. Citi believes the worst of U.S. consumer price inflation already has passed, with a decline to around 3.5 percent likely in 2023, said in its Mid-Year Outlook 2022 report: Investing in the afterglow of a boom. This biannual report sets out Citi’s outlook on rapid developments in the global economy, markets and geopolitics.
“Across developed economies, consumer prices have been rising faster than they have in decades. In response, policymakers are withdrawing the fiscal and monetary boost they provided when COVID struck,” said David Bailin, CIO and global head of investments for Citi Global Wealth. “The U.S. Federal Reserve
