After the 2021-2023 inflation surge — will prices stabilize back to central banks' 2% target?
Scope: Global inflation rates, central bank monetary policy
Global inflation surged significantly between 2021 and 2023, reaching multi-decade highs in many economies due to a confluence of factors including supply chain disruptions, strong consumer demand supported by fiscal stimulus, and the energy crisis sparked by geopolitical events. Central banks globally responded with aggressive monetary policy tightening, rapidly raising interest rates to combat inflationary pressures. The current state sees inflation moderating from its peaks but largely remaining above the 2% targets set by major central banks.
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