Despite declines in headline rates of inflation in the first few months of the year, the majority of chief economists at the World Economic Forum (WEF) anticipate runaway prices to continue to hurt Europe and the United States throughout 2023, according to a WEF report released on Tuesday. 

According to the report, "Headline rates have begun to ease, but core inflation is stickier than anticipated and shows signs of picking up. The pressure on many households remains acute, and more than three-quarters of respondents expect the cost of living to stay at crisis levels in numerous countries throughout 2023."

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The 29-page May 2023 Chief Economists Outlook details that 68% of economists in the US and 90% in Europe expect substantial inflation. In Europe, another 75% foresee sluggish economic growth, but in the US, opinions are divided due to the increased uncertainty around financial stability and the speed and degree of monetary tightening. 

Nearly all chief economists predict that China will experience a significant recovery this year, and the country's reopening is anticipated to increase activity throughout the continent, while only 14% of experts predicted high inflation in China this year.

Sweden anticipates GDP contractions despite decreasing inflation rate

With a  deeper-than-anticipated GDP drop in 2023, the Swedish government has revised its economic forecast, which continues to gradually get worse.

Sweden's inflation is still significantly higher than the government's expectations, despite some reprieve. The problem is made worse by stagnant earnings, reduced spending, and a decline in the property market, long seen as the foundation of the nation's economy.

Elisabeth Svantesson, the Swedish Finance Minster, announced that the GDP forecast has been downgraded from 0.7% to 1% due to a "challenging economic environment."

Svantesson explained that "many people are struggling to make ends meet, so it is important for the Government to fight inflation and support those in the most difficult circumstances," and recognized that the nation is faced with "major challenges."

While Sweden's headline inflation rate had dropped from decades-high levels, the country still experienced inflation that is considered significantly higher than the central bank's objective rate of 2%.