-
Global Services Inflation to Remain Sticky, Slowing Pace of Rate Cuts
Global inflation rates are falling but their descent is being hampered by stubborn services sector price growth, says Fitch Ratings in a new report. Inflation has slowed rapidly, helped by a reversal of food and energy price inflation. Core goods inflation (excluding food and energy) has also fallen and in many countries is now back to its pre-pandemic trend of very low inflation rates or broadly stable prices. But there are few signs of core goods prices declining outright. This means services inflation will need to fall further for inflation to return sustainably to target. However, our analysis suggests services ... (full story)