Inflation Likely Below 3% by the End of Year: Barclays

The video discusses the rapid decrease in inflation and whether central banks are lagging in their response to disinflation. Barclays anticipates a significant drop in inflation, analyzing both bottom-up and top-down approaches, including CPI and PC deflator components. The impact of last year's policy tightening is expected to continue, potentially bringing inflation below 3% by year-end.

Describe the approach taken to analyze the individual components of the CPI.

What role does policy tightening play in inflation trends?