Inflation has been the dominant economic story of the 2020s and the debate over whether it will get worse in 2026 is one of the most consequential questions in global finance. Central banks declared victory over inflation in 2024 and began cutting interest rates. But the structural forces that drove the inflationary surge — deglobalisation, energy transition costs, aging populations, and record government spending — have not gone away. New tariffs, geopolitical supply chain disruptions, and fiscal stimulus programmes risk reigniting price pressures. Inflation optimists point to falling commodity prices, improved supply chains, and the lagged effects of monetary tightening. Pessimists point to a fiscal situation that makes sustained low inflation structurally difficult. Will inflation get worse in 2026?
