On May 25, the minutes of the Federal Reserve’s May meeting stated that oil prices fell slightly due to concerns about the global economic outlook.
Moderation in retail energy inflation continued to contribute to the moderation in headline consumer price inflation in many advanced foreign economies.
Core inflation in some foreign economies showed signs of slowing, but remained elevated amid tight labor markets.
As a result, many foreign central banks continued to tighten monetary policy.
Still, some central banks have paused policy rate hikes or changed forward guidance due to uncertainty over the global economic outlook and recent stress in the banking sector.
Some participants also hinted that future decision-making will shift to a more data-dependent approach.