Mastercard Economics Institute expects inflation to cool in 2024
Inflationary pressures are expected to cool in 2024, as global inflation moderates to just 4.9% year-over-year from 6.0% in 2023, according to a report by Mastercard Economics Institute.
“Most countries are coming out of a “very disorientating type of economy that we were stuck with for a while, where you had big swings in inflation, in interest rates, [and] migration flows for certain economies,” MEI’s David Mann told CNBC’s “Squawk Box Asia.”
He added that, “we’re still finishing off that tail end of the bungee jump” following the Covid-19 pandemic, and expects inflation to calm down and slightly higher wage growth next year — potentially leading to real wage growth.
MEI noted in their report that the global economy will feel “more normal” in 2024, but consumers are likely to remain cautious of spending.
Mann also highlighted that international travel is only about 55% recovered. But entering 2024, countries like China and Japan have the potential to see greater momentum in outbound travels, as China reopens and tourists take advantage of a weaker yen, he explained.