Global Inflation Rates Remain High Despite Slowdowns in Some Countries

UK inflation remained at 10.1% in March, driven by soaring food prices, while the cost-of-living crisis shows little sign of abating. Food and non-alcoholic beverage prices rose by 19.2% in the 12 months to March, experiencing their sharpest annual incline in more than 45 years. Despite residential energy subsidies, there is currently no respite from cost-of-living pressures. Economists expect inflation to fall sharply in April due to the base effects of the spike in energy prices triggered in April 2022 by Russia's invasion of Ukraine, while energy demand will inevitably fall through the summer. The Bank of England is expected to continue hiking interest rates, exerting further downward pressure on what is already expected to be the worst-performing major economy in the world over the next two years.