Canada winning its fight
Some decent news from Canada on the inflation battle raging around the world, with inflation falling to 2.7 per cent in April (and only 2½ per cent excluding gasoline).
The unemployment rate in Canada has surged to 6.1 per cent, meanwhile, and as such the below figures give the Bank of Canada the 'all clear' to start cutting interest rates next month.
The Eurozone also appears to have inflation well under control, and interest rates will start to be cut over the coming weeks.
The picture is a bit less clear elsewhere.
In the UK, headline inflation over the year to April fell to 2.3 per cent, notching the biggest monthly decline in 45 years, due to energy price changes.
However, the drop was still less than market expectations, and with both core and services inflation still running hotter than desired, Bank of England interest rate cuts will be pushed out until later in the year.
Prime Minister Sunak took a gamble today in announcing a UK General Election for July 4, although the bookies have the incumbent Conservative Party at rank outsiders to stay in power after a series of failed leaderships.
In New Zealand, annual inflation as reported quarterly didn't run as high on the way up, but is also taking a flatter trajectory on the way down.
And with NZ inflation largely happening in sectors of the economy where interest rates aren't effective, it's possible that the RBNZ may need to look at taking their foot off the brake soon, lest they risk torching the economy and household finances in the process.
Like Canada, Australia has been running extremely high immigration levels, and the leading indicators suggest a slowdown in wages and a rise in unemployment ahead for Australia.
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