Global battle against inflation ‘largely won'

High inflation has mostly been defeated globally, with prices showing signs of improvement, although some countries still experience pressure. Inflation rates in most nations are nearing central bank targets, marking a significant achievement without triggering a worldwide recession. However, vigilance remains essential. Inflation in services remains high, and some developing economies are hiking interest rates due to an inflation resurgence.

Predictions indicate global inflation slowing to 5.8% this year and further declining to 3.5% next year. These views on consumer prices emerge as inflation continues to be a crucial concern for voters, given the increased cost of goods and services.

Despite significant interest rate cuts, victory hasn't been declared over inflation in the US and Europe. The outlook on inflation risks has improved, but economic growth threats are increasing due to potential hikes in commodity prices and governments' protectionist policies.

Global economic growth is anticipated at 3.2% this year, with a slight upward adjustment in US growth forecasts. However, growth in other regions, such as China, has been downgraded. Much remains to be done globally to enhance growth prospects and productivity, warning against protectionist trade policies. Economic growth should focus on domestic reforms that foster technological advancement, competition, and private investment.