Key data indicators suggest that this year’s rampant global inflation has peaked and that the pace of headline price growth is set to slow in the coming months.
Factory gate prices, shipping rates, commodity prices and inflation expectations have all begun to subside from their recent record levels. These data series are widely watched by economists and policymakers as they provide an early indication of the trends that will shape the headline inflation calculation.
According to economists, the figures suggest that price pressures on global supply chains are easing, making it likely that headline inflation will fall from the historically high rates that hit household finances and business activity in recent months.
That would be welcome news for leading central banks, which have been raising interest rates rapidly in a co-ordinated effort to tame inflation, risking plunging major economies into…