Global inflationary pressures are forecast to continue to ease in Q1 2023. Under the baseline scenario, global inflation is forecast to reach 6.5 per cent in 2023 and then fall to 4.5 per cent in 2024. Slower global economic growth and consequently weaker demand in large part help to cap the inflation growth.
However, inflationary pressures in emerging economies are expected to persist in 2023 as the still high exchange rate of the US dollar, lower foreign exchange reserves and delayed pass-through of the higher energy and commodity prices add to the price pressures.
