Global Inflation Eases, Central Banks Weigh Rate Cuts

Inflation rates in the U.S. and Germany eased in April and May, respectively, with the U.S. reaching 2.1% and Germany edging down to 2.1%, both moving closer to their central banks' targets. Poland's annual inflation dropped to 4.1% in May, slightly below expectations, and is anticipated to fall further due to a significant cut in gas tariffs, increasing the likelihood of central bank interest rate reductions. Chile's retail sales grew 4.5% year-on-year in April, though at a slower pace than previous months, reflecting ongoing consumer resilience. Serbia's industrial production growth slowed to 2.3% in April, mirroring a broader trend of decelerating economic activity. Central banks in these regions are monitoring inflation trends and considering rate cuts as price pressures subside, though uncertainties persist due to global trade policies and energy costs. The overall economic outlook remains cautious as policymakers weigh their next moves.