Inflation set to ease – but will remain high

Headline inflation is projected to peak in the current quarter in most major economies, but is expected ease in Q4 2022 and through 2023 in most G20 countries. However, it is expected to remain well above central bank targets in most countries.

Europe, whose economy is bearing the brunt of the recent spike in energy costs and where monetary policy tightening began later than in the US, will continue to see higher headline and core rates of inflation.

The picture among major emerging-market economies varies widely. Inflation is low and stable in China, while in Brazil and Mexico it is expected to fall towards target as interest rate rises take effect. In Türkiye and Argentina, inflation is expected to ease in 2023 but will remain at very high levels.

> Read more: OECD Interim Economic Outlook

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