Inflation’s fragmented story

Despite durable growth and moderated inflation, the global economy is still toeing a fine line. Looking ahead to next year, policymakers and investors will need to navigate different hidden imbalances. Inflation currently varies across regions, causing global shifts and complicating the risks central banks are facing. Tariffs may add to sustained inflationary pressure in 2026, with higher import costs fuelling increased wage demand and pricing power through the supply chain. The global inflation picture remains fragmented, resulting in greater differences in approaches to monetary policy...