Charting the global economy: Ocean freight rates from Asia to Europe more than double in weeks
economictimes.indiatimes.comFederal Reserve poised to lead the charge for richer countries.
Traders boosted bets on how aggressively the Fed will lower borrowing costs this year after a report showed prices paid to producers continued to fall in December. Even so, the path to taming inflation will be bumpy, as a measure of consumer prices rose by the most in three months.
Similar metrics in Norway and Chile eased in December, while Argentina ended the year with inflation above 200%.
While inflation is mostly retreating around the world, soaring shipping costs and a jump in oil prices are stoking worries about a revival of cost pressures.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
World
After racing ahead with the most aggressive tightening campaign in decades during 2022 and 2023, central banks around the world are poised to begin easing monetary policy as inflation continues to retreat. The shift is captured by Bloomberg Economics, whose aggregate gauge of rates across the world shows a decline of 128 basis points over the year, mostly led by emerging economies.
Poland, Serbia and Korea held rates steady this past week, while Peru cut.
Only days into 2024 that was meant to be the year inflation dissipated, manufacturers and retailers are again juggling delays and facing higher expenses as persistent attacks by Houthi rebels in the Red Sea rattle a major shipping route through the Suez Canal. Ocean freight rates for goods from Asia to Europe have more than doubled over the past four weeks.
Over the next several weeks, governments from the US, UK and the eurozone will start flooding the market with bonds at a clip rarely seen before.
