The ECB’s decision to lower its key policy rates by 25 basis points this week, while widely anticipated, underscores a shift in focus, with central banks now prioritizing economic growth. This marks a departure from the post-pandemic period when monetary policy had been calibrated to curb inflation. In our charts this week we take a closer look at the global inflation scene. In particular we home in on:

·       The global inflation consensus

·       Capacity pressures

·       Unit labour cost inflation

·       Labour market flexibility

·       Remote working trends

·       AI’s productivity potential