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March marks 1 year since the Fed’s first attack on inflation. In retrospect, the 25 basis-point hike to tackle surging prices seems timid, and policymakers soon realised it wasn’t enough, beginning the year-long battle. While CPI has most recently shown a reading of 6.4%, down from the highs of around 9% last summer, there remains a way to go. Fed Chairman Powell insists they are taking “forceful steps” and is scheduled to speak early this week on the subject.

Eurozone inflation fell less than expected last Thursday to 8.5% in the year to February. ECB President Lagarde spoke on the subject, warning that inflationary pressures are likely to remain “sticky in the short term” and commented on the resilience the economy and labour market have been showing. Goldman Sachs said earlier in the week that it was increasing its peak interest rate expectations for the region, adding that a 50 basis-point rise in May is increasingly likely.

UK house prices have seen their biggest annual fall in over 10 years, falling 1.1% in the year to February. The fall can be attributed largely to a rising cost of living, as well as higher mortgage rates. According to Nationwide, this was the first annual fall in property values since November 2012. While mortgage rates have come down following the chaos of Truss’ mini-budget, they remain far above the levels seen in late 2021, making it unlikely for markets to gain momentum in the short term.