Nearly a decade since the start of the financial crisis and an avalanche of emergency monetary stimulus that ensued, inflation is only just now close to the 2% target many of the world’s biggest central banks still keep. But there have been stirring signals on inflation elsewhere in the world, suggesting a turning point may be closer.
The Reserve Bank of India just dropped its bias to ease policy, citing global inflation pressures as one reason for a sudden volte-face. Mexico’s central bank, grappling with a falling peso, hiked rates on Thursday to a near-eight year high.
Key releases on inflation for the United States, Britain and China are due next week, forecast at 2.4, 1.9 and 2.4%, respectively, according to Reuters polls.
The worry is with growth holding up and commodity prices giving inflation a nudge up now, the last thing needed with most major central bank rates still near zero is more fuel poured onto to an already-raging fire.
An expected announcement from the Trump administration on plans for sweeping tax cuts is likely only weeks away, and has again boosted already-lofty stock prices.
Monday, July 20, 2026
