He added that the G-7 central banks are closely monitoring the impact of price pressures on inflation expectations and will continue to gauge the pace of monetary policy tightening based on economic data and in a clearly communicated manner. .
The new lockdowns in China, as a result of coronavirus outbreaks, as well as the war in Ukraine, have caused problems to continue on the supply side and, therefore, in the increase in prices.
The Group of Seven is a group of powerful countries known for their political, economic and military relevance worldwide. It is made up of Germany, Canada, the United States, France, Italy, Japan and the United Kingdom.
“The conditions of the supply chain remained very tense in April (…) Logistics challenges eased (…) but we take this reading with a bit of skepticism as the improvement was partly artificial as lockdowns in China slowed flows trade in US ports and weighed on business activity,” wrote Oren Klachkin, senior US economist at Oxford Economics.
The US Federal Reserve (Fed) and other central banks are already raising interest rates, or have plans to do so, in an attempt to curb inflation.
With information from Reuters.
