Feature Article: Inflation to fall further as 'wartime characteristics' fade.

The article discusses the recent surge in inflation and predicts that inflation rates in the G7 countries will continue to fall to 2% or lower in 2024-2025. The inflationary pressure was caused by a combination of wartime-style fiscal and monetary policies and pandemic-related distortions to product and labor markets. However, these sources of inflationary pressure are now receding. The article also highlights the importance of monitoring fiscal deficits, monetary growth, credit conditions, labor markets, and supply disruptions as indicators of future inflation trends. The analysis suggests that policy divergence may occur among the G7 economies, with the US indicators looking stronger than in Europe. Overall, the article concludes that the 'wartime' characteristics of recent inflation are fading, and further declines in inflation are likely. [Extracted from the article]