Whatās Going On Here?Global inflation might just have peaked, according to reports out over the weekend. What Does This Mean?The worldās had too many unwanted records lately. After global inflation hit a new high of 12.1% back in October, the only new records we want now are the ones emerging from this yearās World Cup. Looks like thereās hope things are turning around, too: right on cue, Messiās started setting records in Qatar, and there are signs inflationās about to run out of steam. See, a number of closely-watched global metrics ā like commodity prices, shipping rates, and inflation expectations ā have begun to ease from their record highs. Thatās supported by data from Capital Economics, showing that inflationās peaked across emerging markets ā while price pressures in developing economies are cooling down too. No wonder, then, some economists are predicting an end to global inflationās record-setting streak. Why Should I Care?The bigger picture: Hold your horses.
Central banks have been doing their darndest to get inflation under control these past few months, but this news wonāt have them cracking out the champagne just yet. After all, thereās still a long way to go before we hit the 2% target rate set by most advanced economies. And letās not forget that energy costs are still a sore spot: the war in Ukraine has got supply on a knife-edge, and Chinese demand could send prices skyward if the countryās economy comes back roaring. So sure, things might not be getting any worse right now ā but high inflation isnāt going to disappear overnight.
Zooming out: Christmas came early.
Lingering high prices didnāt seem to daunt US shoppers over the holiday weekend, with data from Adobe Analytics showing that they set an online-spending record of over $9 billion this Black Friday. And on reflection, it makes sense: this could've been shoppersā last chance to buy gifts at a discount before Christmas rolls around. | 