Suppressing high inflation, many countries have entered a cycle of continuous interest rate hikes

Affected by factors such as the new crown pneumonia epidemic and the conflict between Russia and Ukraine, many countries are suffering from high inflation. In response to the impact of high inflation, mainly due to rising energy and food prices, many central banks have recently raised benchmark interest rates. Some analysts believe that, given that the inflation situation will continue for a long time, continuous interest rate hikes during the year are a certainty.

According to data from the Office for National Statistics on the 23rd, due to factors such as rising energy prices, the UK consumer price index (CPI) rose by 6.2% in February compared with the same period last year, the highest increase since March 1992.

The ECB's current baseline forecast for the average level of inflation this year believes that the inflation rate will be around 5.1%. European Central Bank President Christine Lagarde recently warned that euro zone inflation could exceed 7 percent this year as the conflict between Russia and Ukraine pushes up energy and food prices.

A joint announcement by the Monetary Authority of Singapore and the Singapore Ministry of Trade and Industry on the 23rd showed that the MAS core inflation rate (excluding accommodation costs and private road transport prices) fell to 2.2% in February from 2.4% in January, and the overall inflation rate From 4% to 4.3%.

According to the announcement, global inflation is expected to remain high for some time and will not gradually ease until the second half of 2022. In the near term, heightened geopolitical risks and tighter supply chains will continue to push up crude oil prices. Affected by factors such as geopolitical tensions and global transportation bottlenecks, supply and demand imbalances in commodity markets are also likely to persist.