BAKU, Azerbaijan, June 3. The trajectory of global inflation has been largely favorable in the first half of 2024, according to a World Economic Forum survey, Trend reports.
Thus, global headline inflation is now projected to settle at 5.9 percent in 2024 and 4.5 percent next year, down from 6.8 percent in 2023. Core inflation is also on the decline, despite persistent price increases for core services. However, elevated price levels continue to impact households, particularly in the US, where consumer sentiment dropped 10 points to 67.4 between April and May 2024.
These global figures, however, conceal varying regional patterns and prospects. Advanced economies seem to be in a better position, with inflation expected to return to target in 2025 in the US and possibly even this year in Europe.
In contrast, many emerging market and developing economies are grappling with stubbornly high inflation rates, projected to average 8 percent in 2024. This divergence is reflected in the latest survey results, though expectations are gradually converging towards moderate inflation across most regions.
In the US, about two-thirds of chief economists still expect moderate inflation, unchanged since January, while the share of respondents anticipating high inflation has increased to 22 percent.
For Europe, the outlook remains largely unchanged, with 57 percent expecting moderate inflation and a quarter expecting low inflation this year.
China stands out with deflationary risks, as 81 percent of respondents expect low or very low inflation this year, and the share of those expecting very low inflation has nearly doubled to 35 percent since January.