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Four points (and charts) on the plunge in EM inflation

The broad-based decline in inflation across the emerging world since the pandemic struck has been driven in part by a dip in fuel inflation, but core inflation is softening in many countries too. We expect inflation to fall further, which should embolden central banks to deliver more rate cuts in the coming months. With real rates still high in Mexico and Russia, particularly aggressive easing lies in store.

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