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Central banks globally are anticipated to reduce borrowing costs as global inflation recedes from historically high levels seen over the past two years. While some institutions in emerging markets have already commenced rate reductions, many others are expected to follow suit this year, including the US Federal Reserve, the European Central Bank, and the Bank of England.
The Financial Times’ global inflation and interest rates tracker provides regularly updated visuals on consumer price inflation and central bank policy rates worldwide. This resource illustrates how central banks have responded to rising prices with synchronized interest rate increases.
Higher borrowing costs have successfully slowed the rapid price growth experienced globally over the past three years, influenced by the pandemic and the war in Ukraine. Current data indicates that while inflation rates in most countries have declined from their peaks, policymakers caution that achieving the final step towards central banks’ targets—typically 2 percent in advanced economies—will be challenging.
Readers can use this page to monitor inflation and interest rates on a country-by-country basis and track important measures that indicate how inflation and policy rates might evolve. Recent statistics for major economies reveal that inflation remains high in some areas, especially excluding food and energy costs, which are key indicators of underlying price pressures.
Wholesale energy costs, a timely measure of future consumer price pressures, have subsided from their peaks. The rise in energy prices primarily drove inflation in numerous countries, but gas and electricity costs have diminished following the energy crisis triggered by Russia’s invasion of Ukraine.
This page also tracks 2-year government bond yields, closely linked to market expectations of future interest rates. Asset prices, particularly housing, have been another focal point. Despite a sharp increase in home prices during the pandemic, high mortgage rates have recently led to a significant deceleration in housing price growth in several countries.