The Strategist

FT: Global inflation is at its peak

12/01/2022 - 09:36

According to the Financial Times, key economic indicators point to the possibility that global inflation has peaked and will continue to decline.

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Maximum values for the producer price index were seen in March through August of this year. Nearly all G20 nations' producer prices in October were lower than they were in September. More moderate changes in consumer prices are being caused by a reduction in pricing pressures and an improvement in the supply situation.

However, experts caution that the consumer price scenario would likely stay unstable because of continued supply chain problems and geopolitical uncertainties.

One of the most important economic indicators, the PPI (Producer Price Index) reflects the dynamics of inflation at the production stage. It displays pricing adjustments for both finished goods and individual parts before they are placed on the market.