The world is witnessing a significant shift in monetary policy as central banks across various nations have begun to lower borrowing costs. This change comes in response to a gradual easing of global inflation, which had reached alarming multi-decade highs in numerous countries over the past few years. The shift is marked by a concerted effort from central banks to stabilize their economies and support recovery following the tumultuous effects of the pandemic.

To facilitate an understanding of these complex economic changes, the Financial Times (FT) provides a comprehensive global inflation and interest rates tracker. This tool features a regularly updated visual narrative detailing consumer price inflation and the corresponding central bank policy rates worldwide. It serves as a crucial resource for analysts, economists, and the public alike, offering insights into the factors influencing policymakers’ decisions regarding borrowing costs.

The increase in borrowing costs initiated by central banks in recent years was a strategic response to combat the rampant price growth that surged during the pandemic. Policymakers faced the dual challenge of managing economic recovery while keeping inflation in check. Although inflation rates in many nations have significantly decreased from their peaks, experts warn that the journey toward achieving central banks’ inflation targets—typically set at around 2% for most advanced economies—will be the most challenging phase.

The FT’s platform not only allows users to monitor inflation and interest rates in individual countries but also tracks critical economic measures that signal potential changes in inflation trends and policy rates in the months ahead. For instance, the latest data from major global economies indicates that while inflation rates have moderated, they remain elevated in certain regions, particularly when excluding volatile categories such as food and energy. This core measure is essential for understanding underlying price pressures that may affect consumer behavior and spending.

Wholesale energy prices serve as a key indicator of the price pressures consumers may face in the near future. The energy crisis precipitated by Russia’s full-scale invasion of Ukraine had initially driven energy prices to unprecedented heights, contributing significantly to inflation in many countries. However, there have been noticeable declines in gas and electricity costs, indicating a potential easing of these pressures.

Furthermore, the tracker also displays the yields on 2-year government bonds, which are heavily influenced by market expectations regarding the trajectory of interest rates over that period. This information is crucial for investors and economists who are trying to gauge future economic conditions.

The impact of the pandemic on the housing market has also been profound. While home prices skyrocketed in many countries during the pandemic, the subsequent rise in mortgage rates has led to a notable slowdown in house price growth across various regions. This development poses additional challenges for potential homebuyers and investors alike.