May 2025, the United Kingdom’s Office for National Statistics (ONS) publicly admitted that it had overstated the official consumer price index (CPI) inflation rate for April. The discrepancy—just 0.1 percentage point, pushing the figure from an actual 3.4% to a reported 3.5%—was caused by incorrect vehicle excise duty (VED) data provided by the Department for Transport.

The Eurozone’s inflation rate fell below the European Central Bank’s target for the first time in eight months, bolstering expectations of a monetary policy rate cut later this week. According to a flash estimate by Eurostat, consumer price inflation in the euro area slowed to 1.9% year-on-year in May 2025, down from 2.2% in April and below consensus forecasts of 2.0%.

Crude oil prices climbed for a second consecutive session on Tuesday, with WTI futures rising to $63.10 per barrel, as a confluence of geopolitical disruptions and persistent supply-side constraints reignited concerns over a tightening global energy market.

The U.S. manufacturing sector continued to shrink for a third consecutive month in May 2025, according to the latest data released by the Institute for Supply Management (ISM). The Manufacturing Purchasing Managers’ Index (PMI) fell to 48.5, down from 48.7 in April and falling short of economists’ expectations of 49.5.

The global economy is entering a slower growth phase, with the Organisation for Economic Co-operation and Development (OECD) forecasting a full-year expansion of just 2.9% in both 2025 and 2026, down from 3.3% in 2024.

The United States Dollar Index (DXY) rose to approximately 99.7 as of Wednesday, driven by a convergence of political easing and improving macroeconomic sentiment.

The economic mood in the Euro Area revealed a fragmented outlook in May 2025, as services sector sentiment fell to its lowest level in over four years while industrial confidence and consumer sentiment showed modest but notable gains.

Tokyo, May 28, 2025 — Japan’s 10-year government bond yield rose 5 basis points to 1.52% on Wednesday, breaking a three-day losing streak as policymakers signaled growing concern over volatility in the nation’s bond markets.

Australia stands at a critical economic juncture. While inflation is under relative control, underlying dynamics remain complex. Construction activity is regionally fragmented, and policy trade-offs are increasingly acute. The RBA’s cautious easing reflects both progress in taming inflation and anxiety over economic softness.

Markets were rattled this week as former U.S. President Donald Trump announced a sweeping proposal to impose new tariffs, including a 50% levy on European Union imports and a 25% tariff on Apple products manufactured outside the U.S.

Global crude oil prices have fallen sharply in May, with Brent crude slipping below $80 per barrel for the first time since January and West Texas Intermediate (WTI) trading between $63–$66, as weakening global demand and rising US inventories exert downward pressure on the market.

The global semiconductor supply chain is again under severe stress, echoing the pandemic-era chip crisis but with deeper structural tensions.

The Reserve Bank of Australia (RBA) lowered its benchmark cash rate by 25 basis points to 3.85% at its May policy meeting, marking the first rate cut since January and bringing borrowing costs to their lowest level in two years.

India’s annual inflation rate dropped sharply to 3.16% in April 2025, marking the lowest level since July 2019, according to data released by the Ministry of Statistics and Programme Implementation (MOSPI).

Australia’s mixed consumer and business sentiment in May 2025 reflects a fragile economic recovery shaped by easing inflation, lower interest rates, and improved political clarity, offset by persistent structural and global challenges.

West Texas Intermediate (WTI) crude futures climbed to $62.4 per barrel on Tuesday, notching a fourth consecutive daily gain and reaching a two-week high. The short-term rally in oil prices is primarily driven by the 90-day tariff truce between the United States and China, the world’s two largest oil-consuming nations.

On May 13, 2025, the U.S. stock market experienced a powerful rally across all major indices, primarily driven by a surprising yet temporary rollback of trade tariffs between the United States and China.

The 2008 crisis was the culmination of many converging factors, decades in the making. It was not a singular event but rather a systemic meltdown fueled by macroeconomic imbalances, political and cultural emphasis on homeownership, financial innovation outpacing regulation, and a long period of deregulation and risk-taking.

Australia’s macro-economic narrative in early 2025 is defined by two seemingly contradictory signals. On the one hand, employment continues to rise—32 000 additional positions were created in March—yet the unemployment rate has ticked up to 4.1 per cent.

On 25 April 2025 the World Bank’s chief economist cautioned that “more than half of 150 developing economies are already in—or perilously close to—debt distress.”