INFLATION-WorldBank.pdfVIP

GLOBAL ECONOMIC PROSPECTS | June 2013 Inflation Annex GLOBAL ECONOMIC June PROSPECTS 2013 Annex INFLATION GLOBAL ECONOMIC PROSPECTS | June 2013 Inflation Annex Global inflation is subdued as cost to April of 2013 showing some moderation from more accelerated growth over the past pressures related to commodity two quarters. prices continue to ease and demand The recent down tick in developing factors in high income countries country inflation is notable, presumably remain weak signaling an end to the gradual rise that began in the summer of 2012 — prompted by the upturn in international grain prices Despite loose global monetary conditions and an related to droughts in the US, Eastern acceleration in economic activity, global consumer Europe and Central Asia and shortage of prices rose at a modest 2.7 percent annualized rate grain supplies. in the three months ending April of 2013 (figure INF.1). Among developing countries, inflation in low income economies has shown the fastest This was the slowest first quarter increase in declining trend throughout 2012, both on a global consumer prices since 2009, reflecting year-over-year and a quarterly annualized subdued high-income country growth and a basis. moderation of global commodity prices (figure INF. 2). The year-over-year inflation in these