Cbonds Inflation Outlook May 2025

In May 2025, global inflation trends presented a complex picture of regional divergence, with advanced economies and emerging powerhouses largely maintaining their disinflationary trajectory while many other emerging markets continued grappling with persistent price pressures.

The data reveals distinct patterns across geographies, shaped by monetary policies, commodity price fluctuations, and local economic conditions.

The United States recorded a slight uptick to 2.4% (+0.1 pp), with positive real rates (2.1%) reflecting the Federal Reserve’s restrictive stance.

China remained in deflation (-0.1%), while Japan (3.5%) grappled with negative real rates (-3.0%) despite ultra-low policy rates.

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