There are signs that the strain on supply chains is easing, though the overall rate of price increases remains near record-highs. UK headline CPI inflation rose to 5.1% year-on-year in November whilst the equivalent US and eurozone measures rose to 6.8% and 4.9% respectively. Rising petrol and secondhand car prices have continued to drive up headline measures but prices are rising in almost all goods and services.

As realised and forecast inflation continue to move higher amid labour market tightening, central banks have adopted less accommodative stances. The Federal Open Markets Committee (FOMC) announced plans to accelerate the tapering of asset purchases, with the median FOMC member forecasting three rate hikes next year. The Bank of England raised rates to 0.25% p.a., with further rate hikes expected in 2022.