Ahead of Friday’s US inflation data, due at 1230 GMT, Citi Global Wealth Investments released its Mid-Year Outlook 2022 report, with the key takeaways found below.

“The worst of US consumer price inflation has already passed, with a decline to around 3.5% likely in 2023.”

“Across developed economies, consumer prices have been rising faster than they have in decades. In response, policymakers are withdrawing the fiscal and monetary boost they provided when COVID struck.”

“The US Federal Reserve is leading the way, signaling some of the biggest annual interest rate rises in its history. We think that the Fed’s actions will determine if there is going to be a recession or sustained growth. The economy can stand higher rates, but not an abrupt withdrawal of liquidity.”

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