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Last-mile challenges

US inflation is altering expectations

inflation market
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Assessing the trajectory of inflation has become increasingly challenging. The US Federal Reserve, along with several other central banks in both advanced and developing economies, for instance, believed that the increase in consumer prices in the aftermath of the pandemic was transitory in nature. However, sustained high inflation rates eventually forced them to adjust, which led to a sharp and coordinated increase in policy rates across most parts of the world in 2022, resulting in a significant tightening of global financial conditions. Higher interest rates did have an impact and inflation rates gradually came down. This led to optimism in

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