Energy prices have not eased significantly after the Middle East conflict, and a combination of tight labor markets and corporate pricing power is keeping inflation above target in major economies, Chosun Ilbo reported. The UK consumer price index rose 3.3 percent in March, well above the Bank of England's 2 percent target.

Against this backdrop, the European Central Bank and Bank of Japan have both raised rates this month, while the Fed under its new chair is weighing whether to hold or raise further. J.P. Morgan and iShares forecast that if core inflation climbs above 3 percent, a new global tightening cycle could begin.

After the 2022-2023 tightening cycle, global central banks broadly cut rates during 2024-2025, but persistently stubborn inflation has raised fears the easing cycle may be cut short. MacroMicro data show that the share of major central banks expected to cut rates before the end of 2026 is shrinking.

Energy shocks, geopolitical supply chain disruptions, and surging defense spending are identified as structural factors pushing up costs. Unless inflation stabilizes, room for central bank policy maneuver will remain narrow.

For Chinese-community businesses active in trade and manufacturing, rising rates translate into higher financing costs and increased operational pressure, warranting close attention.