G7 Inflation Outlook

Apollo Chief Economist

Our inflation outlook for the G7 is available here, there are three conclusions:

1. Headline inflation is coming down in most G7 countries because of falling energy prices and global supply chains normalizing after Covid.

2. Core inflation is more sticky in the US and Canada, where easier financial conditions and a rebounding housing market could lift inflation over the coming quarters. Core inflation is also more sticky in Japan. 

3. In Europe and the UK, both headline and core inflation are moving faster down to 2%, driven by normalizing supply chains, falling energy prices, and a faster slowdown in their economies because of the energy transition, a more interest rate-sensitive housing market, and slower growth in China.

Source: Apollo Chief Economist
US: Rent inflation rising in small cities
Source: BLS, Haver Analytics, Apollo Chief Economist
Source: BLS, Haver Analytics, Apollo Chief Economist

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