28 August 2023
Global trends like rising trade barriers, aging populations, and a shift to renewable energy are intensifying inflation pressures, complicating central banks’ efforts to control inflation. The reversal of globalization, as companies shift away from China, increased domestic manufacturing subsidies, and an aging workforce are causing supply shocks and price pressures, despite cooling factors like China’s weakening growth. These changes challenge central banks, increase goods costs, and risk economic fragmentation.