Key facts
- High inflation expected to persist globally into next year.
- Economists increasingly concerned about entrenched price pressures beyond energy costs.
- AI investment is making some economies more resilient to cost of living pressures.
- Global bond markets have tightened financial conditions through higher yields.
- Crude oil prices hit a six-month high of over $117 last week.
- Economists upgraded global growth forecasts to 3.0% for this year and 3.2% for next year.
High inflation is expected to persist globally into next year, according to a Reuters poll of hundreds of economists. Price pressures are becoming entrenched beyond rising energy costs, exacerbated by the conflict in the Middle East. While AI investment has bolstered economic resilience, rising energy prices continue to ripple through the global economy. Economists have raised their inflation forecasts for many economies, including Britain, the euro zone, the US, India, and Brazil. Global growth forecasts for this year and next have been upgraded.