Major monetary authorities across the globe remain in pursuit of price stability and have sustained their pace of rate hikes. This coupled with reduced household spending and lower energy prices (Brent crude price declined to USD72.66/bbl in May 2023 from USD79.54/bbl in April 2023) has directed headline inflation southward so far in 2023. Headline inflation in the US and UK declined to 4.90% and 8.70% in April 2023 (vs. 5.00% and 10.10% in March), respectively. Similarly, the Eurozone’s inflation rate declined to 6.10% in May (from 7.00% in April 2023). The impact of these consecutive rate hikes has also been felt in economic growth. The Eurozone officially slipped into a recession in Q1:2023 as it recorded a 0.10% decline in output, following the 0.10% decline recorded in Q4:2022.
Macro-Economic Update – Ahead of Inflation – May 2023
