Global Data Watch • Global CPI tracking close to a 10%ar 2Q increase threatens growth … • … as it intensifies purchasing power squeeze and accelerates rate hikes • Growth to rotate away from US and toward Asia • Next week: FOMC to hike 50bp and signal rates to rise above 3% Wash, rinse, repeat A majority of countries have reported May CPI, and the drumbeat of upward inflation surprises continues. Global May CPI (ex. Turkey) is tracking a 0.7%m/m gain, the second-highest monthly increase on record. We now anticipate the global CPI will rise at close to a 10%ar this quarter. Given the breadth of gains and the continued upward pressure on energy prices, the moderation in global inflation we still forecast for the coming quarter is now to a level that is more than twice that expected earlier this year (Figure 1).