Global | Inflation and Bottlenecks Chartbook April 2023

Headline inflation eased further in the US in April, while May data for the Euro Area showed price pressures eased after having picked up in April. That said, core inflation remains sticky overall. In contrast, inflation slowed markedly in China.

Key points

• Key points:
• The US headline inflation edged down below 5%YoY in April, notwithstanding a pick up in gasoline prices. Core inflation remained high, led by a rebound in core goods and slower moderation in housing-related inflation.
• The Euro Area inflation surprised on the upside in April led services. Reassuringly, flash inflation estimates for May suggests broad-based easing in price pressures, weighed by a fall in energy prices and softening services inflation .
• Synchronicity and persistence indicators reaffirm the moderating inflation trends in the US, while in Europe, they show early signs of cooling.
• Our supply bottlenecks indicators trend towards normalization in the Euro Area. Meanwhile, the US supply disruptions have diminished to pre-pandemic levels.

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