The Consumer Price Index (CPI) is used to track the prices of goods and services over time, measuring inflation on monthly consumer price changes. The CPI is at its highest since June, mostly affected by the food and energy prices. The latest CPIs in three different regions are shown in Chart 2.
Since the start of March, five interest rate hikes have been implemented as part of the US Federal Reserve’s counter-inflation measures to slow down the economy. The Bank of England also carried out five consecutive interest rate hikes of 25 basis points (bps) and 50 bps for the first time in August. The European Central Bank only began its first rate hike in July. The latest effective rates of the central banks are shown in Chart 1.
