Global inflation pressures are easing but challenges remain

Inflation is sufficiently elevated globally that even a month without any increase in prices still leaves inflation in most economies above 5 percent by year-end 2022, reported Oxford Economics.

Moreover, price pressures are so rife across goods and services that a rapid return to price stability is unlikely. Still, policy tightening is working: The United States and United Kingdom are seeing core inflation fall, with further drops expected. Europe (and Japan) have yet to see an improvement in core goods and services inflation. With energy and commodity prices in retreat globally, inflationary pressures have begun to ease. However, challenges remain.

Almost all goods and services are now seeing price increases

The U.S. median inflation rate at 7.8 percent is well above its mul