Global Inflation Levels

Global inflation levels remain subdued. Here we look at inflation in some of the larger economies to assess the current situation and what may happen over the remainder of the year.

Global Inflation Rates

In the UK headline annual inflation fell to -0.1%, the first negative rate since 1960. Falling petrol, food, gas & electricity and airfare inflation rates all contributed to the decline in April. Inflation will remain around zero for a few months yet, with the lower oil price effect staying in place until the anniversary of the sharp oil price drop later this year. At this point, the effect of the oil price drop will fall out of the annual rate of growth, pulling the inflation rate higher.