Experts: inflation in the world has peaked and will weaken

A number of experts suggest that inflationary pressure in the world has reached its peak, and the pace of price growth will weaken in the coming months. Such an opinion was based on a decline in some important indicators, such as producer prices, commodity prices and freight rates, as well as inflation expectations, which also began to fall from recent records.

According to economists, the incoming statistics suggest that problems in supply chains are softening, and this increases the likelihood of weakening inflation. 

At the moment, global inflation reached a record 12.1% in October, and many analysts consider this level to be the peak. It is worth noting that in a number of developing countries, including Brazil, Thailand and Chile, the inflation rate has already passed its peak and has begun to weaken. 

In developed countries, there is also a decrease in inflationary pressure: almost all G20 countries that published data for October recorded a slowdown in the rate of increase in producer prices in annual terms. For example, in Germany, the largest economy in Europe, producer prices in October fell by 4.2% compared to the previous month.

A slowdown in global inflation is expected by experts next year – against the background of lower commodity prices due to a reduction in demand. In addition, energy prices, according to many, will begin to level off in 2023. Analysts predict that the growth rate of consumer prices will decrease by about 3 percentage points over the next six months (against the background of changes in the cost of food and energy).

However, there are also those who warn of a possible rise in commodity prices if the Chinese economy begins to recover quickly, and Russia further reduces exports in response to Western sanctions.